The RBA pays very close attention to what goes on in China, as i is a critical export market for Australian minerals.
From MNI on Monday:
- The People’s Bank of China resumed injections of liquidity via its biweekly open market operations as part of its “mini stimulus” response to the State Council’s signal to stabilize economic growth, the Financial News said Monday.
- said the PBOC’s resumption of injections via reverse repos signals its willingness to support the market…
- If the editorial does reflect PBOC thinking, it represents a stunning reversal from just over a month ago, when the bank was deliberately starving the interbank system of liquidity in a bid to force banks to deleverage.
Also, via Bloomberg (“China’s Overnight Money Rate Drops a Third Day on PBOC Signals”):
The central bank wants to lead money-market rates lower to reasonable levels and not to maintain tight liquidity, or raise money-market rates whatsoever,” Chen Jianheng and Liu Mingxi, analysts with China International Capital Corp., wrote in a research report today
Any pro-growth stories from China are a positive input for the AUD
Source: The Age
