Eyes were on the People's Bank of China Loan Prime Rate setting today:
But the PBOC surprised with two moves elsewhere.
The reference rate was hit with a huge hammer, the Bank set the rate 700+ points lower than the reported expected:
Secondly, the bank eased its macro-prudential adjustment parameter, raising it to 1.5 from 1.25. This eases companies and financial institutions' cross-border financing, enabling more foreign capital inflows.
CNH has rocketed higher on the twin moves:
In turn this has fed through to a higher AUD (AUD likes a stronger yuan as at the amrgin it gives China extra $ to buy Australia's goods and services). AUD also supported by another solid jobs report:
