Early Friday morning, Authorities in China appear to have rolled up their sleeves as the state planner National Development and Reform Commission (NDRC), People’s Bank of China (PBoC) and the Human Resource Ministry all try to tame market fears about the dragon nation.
That said, the state planner NDRC announced multiple measures to bolster automobile consumption.
Among them, the NDRC’s push for 'economical and practical car models' via coordinated efforts among the local authorities gained major attention. That said, measures to optimize purchase restriction policies and an increase in annual car purchase quotas were also important measures to watch.
Elsewhere, the PBoC defied the market’s expectations of witnessing a heavy jump in the Chinese Yuan (CNY) by fixing the USD/CNY rate more than 400 pips below the forecasts to 7.1456, acting too defensive for the domestic currency for the second consecutive day.
Further, China’s Human Resource Ministry said that the nation created 6.78 million new urban jobs in the first half of 2023, achieving 57% of the target.
Additionally, China Forex Regulator also crossed wires, via Reuters, while showing readiness to prevent external risks by saying that the savings ratio is at a relatively high level and helps the current account in maintaining a reasonable surplus. China's FX regulator also cited attractiveness of the nation's bond market and anticipated more stable and sustainable investment in the bond market.
Market reaction
Despite multiple efforts to renew the market’s optimism, the risk-barometer AUD/USD pair remains pressured near 0.6775 by the press time.
Also read: AUD/USD Price Analysis: Bears approach 0.6730 confluence level on breaking nearby support
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