People’s Bank of China Boosts the Aussie Dollar

The reassurance by the governor of the People’s Bank of China to Europe and the world showed a sudden enhancement in the performance of the Australian dollar in earlier trading. The governor assured that China is still committed to investing in the euro as an asset. The spread of this news helped in increasing the risk appetite in time of insecurity in the market. Apart from this, the Reserve Bank of Australia has also extended its helping hand towards the Aussie Dollar and continues to be careful about cutting interest rates.

The postponement of the Greek debt deal again has undoubtedly increased the tension about the Eurozone. Showing his optimism, PBOC Governor Zhou Xiaochuan remained confident of Eurozone’s efficiency in winning through the troublesome situation. He also repeated and stressed on China’s continuing support for the Euro. This encouragement boosted the Aussie though it remained unsuccessful in taking euro much higher against the US dollar.

RBA’s role can’t be undermined as RBA officials’ reluctance to cut interest rates has proved beneficial for the Aussie. Australia’s determination not to simplify the monetary policy has heightened the hope among those who think that the economy Down Under will continue to be strong. Apart from this, shooting gold prices are also proving as a boon for the Australian dollar.

You may also like -

Forex News – Slowdown of manufacturing in ChinaManufacturing in China has experienced a slowdown in November, two different reports indicated. This gives more reason to the Chinese government for easing monetary ... Euro Declines To a Low of $1.24572 Following Spain's Debt WorriesThe euro hit a fresh two-year low today, impaired by fears regarding Spain's growing borrowing rates and projections that extra spending may be required ... Australian Dollar Falls After Poor Fundamental Data from ChinaThe Australian dollar posted some losses, falling to its lowest level for this year, versus the US dollar. The slip was mainly attributed to ... US & Europe brings in good news for NZD: Bollard’s speech adds flavor to itAll the countries in the world, be it underdeveloped, developing or developed, always aim to have a trading environment for the currencies that yield ... AUD rates fall minutes after RBA policy meeting gets overThe last Reserve Bank of Australia meeting led to Australian Dollar’s value dip in the market. The reports of sinking Australian Dollar value came ...