The Australian dollar edged higher today as the market sentiment improved following good news from China. Chinese policy makers took steps to calm the yuan’s volatility while the nation’s stock market stabilized.
The People’s Bank of China raised the yuan’s daily fixing and announced that it is going to implement a reserve requirement ratio on offshore banks’ domestic deposits in an attempt to deter speculation in the currency. Meanwhile, the Shanghai Stock Exchange Composite Index rose a bit after falling earlier. The Australian dollar, which is often used as a proxy for China’s economic performance, profited from the improvement in the traders’ sentiment that followed the news.
AUD/USD rose from 0.6840 to 0.6884 and AUD/JPY gained from 79.82 to 80.80 as of 12:23 GMT today.
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