China weighs new stimulus to meet growth target – Bloomberg

Dhwani Mehta FXStreet

Citing people familiar with the matter, Bloomberg News reported on Tuesday, China is weighing new stimulus and higher deficit to meet its annual growth target.

The Chinese authorities are mulling the issuance of at least CNY1 trillion ($137.1 billion) of additional sovereign debt for spending on infrastructure such as water conservancy projects, the sources added.

Market reaction

China’s stimulus news adds to the risk-on market environment, which put a fresh bid under the Australian Dollar. The AUD/USD pair jumped nearly 35 pips on the above report, testing 0.6430 before retreating to 0.6420, where it now wavers. The spot is up 0.17% on a daily basis.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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