Many had expected an RRR reduction this weekend, at the end of the New Year holiday, but the PBOC held off; more from Bloomberg.
This is mildly bearish for the AUD, as the market had expected some monetary loosening which would free up more spending and boost demand for commodities. AUD/USD has already lost almost half a cent today, down from 1.0650 at the NY close to 1.0605 at present.
