The Australian dollar is strengthening against the US dollar. The current AUDUSD exchange rate stands at 0.6531.
China has resumed its everyday activities, giving Australia more reasons to react.
This morning, China reduced its benchmark mortgage rate to bolster the housing market, which had previously experienced a decline. Capital markets responded positively to the news, with AUD also increasing.
China’s decision on the interest rate complements the list of measures the country has taken earlier to revive the housing and other real estate sectors. This segment accounts for over a quarter of China’s GDP, so it cannot be overlooked. Even with government support, it poses significant challenges, necessitating careful monitoring of any risks from this aspect.
Positive news from China is vital for the AUD, as China remains Australia’s primary trade and economic partner.
Source: Roboforex
