Will actively expand domestic demand, putting consumption boost in a more striking position
The post Will actively expand domestic demand, putting consumption boost in a more striking position appeared on BitcoinEthereumNews.com.
Vice Head at China’s National Development and Reform Commission (NDRC), the country’s state planner, said on Thursday that they “will actively expand domestic demand, putting consumption boost in a more striking position.” Further comments There is ‘sufficient’ room for counter-cyclical policy adjustments. China has conditions, ability and confidence to achieve full-year growth target. Will promote effective investment. Market reaction The Aussie seems to be finding some support following these comments, as AUD/USD trims losses to trade neutral at 0.6540, 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 value of…
Filed under: News - @ August 1, 2024 6:08 am