China flags sustained fiscal support for growth in 2026 plan — Bloomberg
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China signaled a more proactive fiscal stance in 2026, indicating sustained government support to drive growth in a challenging external environment, Bloomberg reported on Sunday. A statement from the Ministry of Finance said that Beijing aims to expand targeted investment for priority sectors such as advanced manufacturing, tech innovation and development of human capital. The announcement followed a year-end working meeting to set next year’s fiscal policy priorities. Market reaction The AUD/USD pair is up 0.02% on the day to trade at 0.6716 as of writing. Australian Dollar FAQs 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. The Reserve Bank of Australia (RBA) influences the Australian Dollar (AUD) by setting the level of interest rates that Australian banks can lend to each other. This influences the level of interest rates in the economy as a whole. The main goal of the RBA is to maintain a stable inflation rate of 2-3% by adjusting interest rates up or down. Relatively high interest rates compared to other major central banks support the AUD, and the opposite for relatively low. The RBA can also use quantitative easing and tightening to influence credit conditions, with the former AUD-negative and the latter AUD-positive. China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the…
Filed under: News - @ December 29, 2025 1:11 am