Loading…
The People's Bank of China cut its one-year loan prime rate to 4.05% from 4.15% and its five-year rate to 4.75% from 4.80%, as widely expected. The yuan and Australian dollar slid after the decision, with AUD/USD hitting fresh lows near 0.6652.
Lower Chinese borrowing costs aim to support demand from firms hit by the outbreak, which is supportive for Australian commodity exports. A weaker Australian dollar can make Australian grain and feed exports more competitive.
octaafrica.netFeb 20, 2020After 398 past bullish macro events, Chinese Yuan (CNY per USD) moved a median +0.0% over 5 sessions (56% higher; middle half -0.3% to +0.5%), and +0.0% over 20.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
