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29 Dec 2014
AUD/USD gains on PBoC moves
FXStreet (Mumbai) - The Aussie edged higher versus the US dollar today, amid speculation that the People’s Bank of China (PBoC) may take up measures to loosen credit conditions in a bid to boost lending.
Currently, the AUD/USD pair traded at 0.8144 levels, up 0.24% on the day, trading close to intraday high levels of 0.8149 hit some time ago. The Aussie advanced against the greenback on news that the PBoC will include savings held by lenders for non-deposit-taking financial institutions into bank deposits from 2015 in an effort to spur lending. This means that China's central bank may consider savings held by banks for non-deposit-taking financial institutions to be calculated as regular bank deposits next year. The new measure is aimed at boosting the lending capacity of Chinese banks. China is Australia’s top trading partner.
Moreover, a rebound in commodities prices is also likely to keep AUD/USD buoyed.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.8176 (Dec 22 High) levels, above which gains could be extended to 0.8195 (Dec 19 High) levels. On the flip side, support is seen at 0.8104 (Dec 17 Low) levels, from here it to 0.8080 levels.
Currently, the AUD/USD pair traded at 0.8144 levels, up 0.24% on the day, trading close to intraday high levels of 0.8149 hit some time ago. The Aussie advanced against the greenback on news that the PBoC will include savings held by lenders for non-deposit-taking financial institutions into bank deposits from 2015 in an effort to spur lending. This means that China's central bank may consider savings held by banks for non-deposit-taking financial institutions to be calculated as regular bank deposits next year. The new measure is aimed at boosting the lending capacity of Chinese banks. China is Australia’s top trading partner.
Moreover, a rebound in commodities prices is also likely to keep AUD/USD buoyed.
AUD/USD Technical Levels
The pair has an immediate resistance at 0.8176 (Dec 22 High) levels, above which gains could be extended to 0.8195 (Dec 19 High) levels. On the flip side, support is seen at 0.8104 (Dec 17 Low) levels, from here it to 0.8080 levels.