AUD/USD Rallies to Above 0.78 on China’s RRR Cut

The People’s Bank of China (PBOC) on Sunday cut the amount of cash that banks must hold as reserves (RRR) in the latest attempt to help spur bank lending and combat slowing growth.

The Aussie dollar briefly touched a near one-month high of $0.7844, rising from around $0.7785 late in New York on Friday. It has since stepped back to $0.7807.

Still, given that China is the biggest export market for both Australia and New Zealand, fresh stimulus to boost growth there is likely to underpin both Antipodean currencies.