From the China Securities Journal in a front page editorial (via MNI news):

  • The PBOC’s latest “interest rate corridor” management suggests there’s no intention of tighten monetary policy and may even suggest some sort of policy easing
  • based on the 7% ceiling for seven-day reverse repos, the median level of money market rates should be around 3.9%, same as it was in 2013, suggesting the central bank has no intention of stepping up tightening
  • the rate ceiling will help to stabilize money market rates and lower rate volatility, which will encourage banks to borrow short and lend long, a way of monetary policy easing

–

Indications such as this from the PBOC’s actions should be a positive for risk sentiment and for the AUD. Perhaps the People’s Bank of China (PBOC) is allowing the market some breathing room around the New Year’s holiday period?