Australian Dollar Climbs On PBoC Easing Signals
November 22 2021 - 2:46AM
RTTF2
The Australian dollar appreciated against its major counterparts
in the European session on Monday, as China's central bank signaled
the possibility of policy easing amid risks to economic growth.
In its latest quarterly monetary policy report published on
Friday, the People's Bank of China suggested a shift in policy
stance by removing key phrases cited in previous reports, including
its adherence to "normal monetary policy."
The PBOC report also dropped a previous pledge to not "flood the
economy with stimulus."
Investors are betting that Chinese authorities would implement
monetary easing and unveil fiscal stimulus amid concerns about a
slowdown in economic growth.
China's cabinet said that it would provide financing support for
small businesses hit by the COVID-19 outbreak, power failures and
price pressures.
The aussie advanced to 0.7263 against the greenback, 82.94
against the yen and 0.9174 against the loonie, up from its prior
lows of 0.7228, 82.36 and 0.9138, respectively. The aussie is
likely to challenge resistance around 0.74 against the greenback,
84.00 against the yen and 0.93 against the loonie.
The aussie reached 5-day highs of 1.5529 against the euro and
1.0370 against the kiwi, rising from its early low of 1.5608 and
near a 2-month low of 1.0315, respectively. If the aussie rises
further, it may find resistance around 1.49 against the euro and
1.06 against the kiwi.
Looking ahead, U.S. existing home sales for October will be
published in the New York session.
At 10:00 am ET, Eurozone flash consumer sentiment index for
November will be out.
Euro vs AUD (FX:EURAUD)
Forex Chart
From Aug 2024 to Sep 2024
Euro vs AUD (FX:EURAUD)
Forex Chart
From Sep 2023 to Sep 2024