The People’s Bank of China (PBOC), China's central bank kept the one-year Medium-term Lending Facility (MLF) rate steady at 2.50% on Sunday. Injects 500 billion yuan vs. the 499 billion yuan in MLF maturing today.
The MLF was last cut in August 2023, from 2.65%.
Australian Dollar FAQs
What key factors drive the Australian Dollar?
One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) – is also a factor, with risk-on positive for AUD.
How do the decisions of the Reserve Bank of Australia impact the Australian Dollar?
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