Created
: 2025.01.08
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
PBOC's Peng: Will help banks in increasing loans for trade-in initiative
World FX news
Breaking news
PBOC's Peng: Will help banks in increasing loans for trade-in initiative
New
2025.01.08 13:59
2025.01.08 13:59
2025.01.08 13:59
Peng Lifeng, an official at the People's Bank of China (PBOC), said in a statement on Wednesday that the central bank "will help banks in increasing loans for trade-in initiative."
Additional takeaways
Will step up financial support for private and small firms in equipment upgrades.
Will allocate 100bn yuan loans for select small technology firms.
China to provide up to 15% or price subsidy for smartphones.
Market reaction
AUD/USD found some buyers on the PBOC headlines, erasing losses to trade flat at 0.6230 at the press time.
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 the Australian Dollar (AUD). When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected. Positive or negative surprises in Chinese growth data, therefore, often have a direct impact on the Australian Dollar and its pairs.
Iron Ore is Australia's largest export, accounting for $118 billion a year according to data from 2021, with China as its primary destination. The price of Iron Ore, therefore, can be a driver of the Australian Dollar. Generally, if the price of Iron Ore rises, AUD also goes up, as aggregate demand for the currency increases. The opposite is the case if the price of Iron Ore falls. Higher Iron Ore prices also tend to result in a greater likelihood of a positive Trade Balance for Australia, which is also positive of the AUD.
The Trade Balance, which is the difference between what a country earns from its exports versus what it pays for its imports, is another factor that can influence the value of the Australian Dollar. If Australia produces highly sought after exports, then its currency will gain in value purely from the surplus demand created from foreign buyers seeking to purchase its exports versus what it spends to purchase imports. Therefore, a positive net Trade Balance strengthens the AUD, with the opposite effect if the Trade Balance is negative.
Last updated
: 2025.01.08
Related articles
NZD/JPY Price Analysis: Pair stumbles below 100-day SMA, leaving rally in doubt
23 minutes agoUSD/JPY Price Forecast: Climbs and clears 158.00 as traders eye 160.00
24 minutes agoAustralian Dollar struggles as US data and trade fears weigh
2025.01.09 06:03Forex Today: Back half of the week brings key datapoints as NFP looms ahead
2025.01.09 04:56Canadian Dollar continues to pare recent gains, falls back further on Wednesday.
2025.01.09 04:20US Dollar rises as robust labor data buoy sentiment
2025.01.09 03:31
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
NZD/JPY Price Analysis: Pair stumbles below 100-day SMA, leaving rally in doubt
NZD/JPY retreated on Wednesday, declining by 0.33% to settle near 88.75.
New
2025.01.09 06:40USD/JPY Price Forecast: Climbs and clears 158.00 as traders eye 160.00
The USD/JPY edged higher late in the North American session after the Federal Reserve revealed its December meeting minutes.
New
2025.01.09 06:39Australian Dollar struggles as US data and trade fears weigh
The Australian Dollar declined by 0.36% to 0.6215 on Wednesday despite Wall Street reversing some earlier risk-off moves tied to President-elect Donald Trump's tariff threats.
New
2025.01.09 06:03Gold price rise as Fed minutes suggest cautious easing approach
Gold price climbed during the North American session after the United States (US) Federal Reserve (Fed) struck a neutral to slightly hawkish tone in last December meeting minutes, hinting that it "would be appropriate to slow pace of easing." At the time of writing, XAU/USD trades at $2,659, up by 0.34%.
New
2025.01.09 05:10Forex Today: Back half of the week brings key datapoints as NFP looms ahead
Markets roiled on Wednesday but mostly stuck within tight ranges as investors gear up for a hectic release schedule ahead of Friday's key US NFP jobs print.
New
2025.01.09 04:56Canadian Dollar continues to pare recent gains, falls back further on Wednesday.
The Canadian Dollar (CAD) shed another one-fifth of one percent on Wednesday as the Loonie continues to flub chances for a technical recovery from multi-year lows against the US Dollar.
New
2025.01.09 04:20US Dollar rises as robust labor data buoy sentiment
The US Dollar Index (DXY), which measures the value of the USD against a basket of currencies, gained towards 109.00 on Wednesday, mainly due to strong labor market figures.
New
2025.01.09 03:31Dow Jones Industrial Average softens as jobs data withers
The Dow Jones Industrial Average (DJIA) ground its way lower once again on Wednesday.
New
2025.01.09 03:08Mexican Peso depreciates as Trump's tariff threats boost US Dollar
The Mexican Peso (MXN) was pressured by broad US Dollar (USD) strength on Wednesday, as risk-aversion capped the Mexican currency's advance due to reiterated tariff threats by United States (US) President-elect Donald Trump.
New
2025.01.09 02:50EUR/USD Price Analysis: Pair slides below 1.0300, indicators lose steam
EUR/USD struggled on Wednesday, shedding 0.48% to trade around 1.0295.
New
2025.01.09 00:56Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
