The Australian and New Zealand dollars rose on Wednesday after China’s central bank said it cut banks’ reserve requirement ratio by 50 basis points as it stepped up its effort to support the economy.
The actively traded, growth-linked currencies rose as a result. The Australian dollar climbed to $0.7843 from around $0.7785 beforehand. The New Zealand dollar also rose to $0.7422 from around $0.7380, up 0.8 percent on the day.
Earlier in the day, China’s central bank said it injected 375 billion yuan ($60.0 billion) worth of three-month loans into large Chinese banks in November and December.
via Reuters
Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.