- China's state media say that the government will lower the capital ratio requirements for some infrastructure projects.
- AUD and Copper could be affected as the full details push through.
There have been some reports by the Chinese state media that the government are planning to lower the capital ratio requirements for some infrastructure projects.
It has also been reported that the cabinet will lower minimum capital investment ratios for ports, shipping infrastructure projects to 20% from 25%.
There are not too many details about which projects will be included in this scheme but for the likes of base metals and the Australian dollar, this could be significant.
As of yet both assets have not reacted as the story is not to clear and we need more information. This is not the only measure the Chinese have taken to boost industrial and economic growth. The PBoC have but the RRR a few times and there have also been many liquidity injections from Chinese officials.
Today both AUD and Copper have struggled after Trump failed to provide any meaningful updates on the trade negotiations with China in Tuesday's speech at the New York Economic Club. This news may not have an immediate impact but it shows some more good intention from the Chinese to boost the economy.
All information and content on this website, from this website or from FX daily ltd. should be viewed as educational only. Although the author, FX daily ltd. and its contributors believe the information and contents to be accurate, we neither guarantee their accuracy nor assume any liability for errors. The concepts and methods introduced should be used to stimulate intelligent trading decisions. Any mention of profits should be considered hypothetical and may not reflect slippage, liquidity and fees in live trading. Unless otherwise stated, all illustrations are made with the benefit of hindsight. There is risk of loss as well as profit in trading. It should not be presumed that the methods presented on this website or from material obtained from this website in any manner will be profitable or that they will not result in losses. Past performance is not a guarantee of future results. It is the responsibility of each trader to determine their own financial suitability. FX daily ltd. cannot be held responsible for any direct or indirect loss incurred by applying any of the information obtained here. Futures, forex, equities and options trading contains substantial risk, is not for every trader, and only risk capital should be used. Any form of trading, including forex, options, hedging and spreads, contains risk. Past performance is not indicative of future FX daily ltd. are not Registered Financial Investment Advisors, securities brokers-dealers or brokers of the U.S. Securities and Exchange Commission or with any state securities regulatory authority OR UK FCA. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest, with or without seeking advice, then any consequences resulting from your investments are your sole responsibility FX daily ltd. does not assume responsibility for any profits or losses in any stocks, options, futures or trading strategy mentioned on the website, newsletter, online trading room or trading classes. All information should be taken as educational purposes only.
Recommended content
Editors’ Picks
EUR/USD: US Dollar turns north as central banks’ decisions loom Premium
The US Dollar turned north this past week, partially losing its pace on Thursday, as speculative interest took a break ahead of the United States employment figures scheduled for Friday. On the contrary, the Euro remained on the back foot as the economic future remains uncertain.
GBP/USD remains on track to snap three-week winning streak
GBP/USD recovered toward 1.2550 after coming in within a touching distance of 1.2500 in the second half of the day after Nonfarm Payrolls came in at 199,000 for November. Despite the recent rebound, the pair remains on track to snap a three-week winning streak.
Gold bulls turn hesitant ahead of US inflation data, Fed meeting Premium
Following an impressive rally at the beginning of the week, Gold turned south and snapped a three-week winning streak. As market focus shifts to next week’s key data releases and central bank events, XAU/USD’s technical outlook points to a loss of bullish momentum.
Altcoin bull cycle 2023 picks by analyst: Ethereum, ChainLink, Arbitrum, Optimism
Crypto analyst Michaël van de Poppe picked four altcoins for the ongoing bull run, in his recent video on YouTube. The analyst believes these altcoins could outperform other assets and yield gains for traders, alongside Bitcoin price rally to $48,000.
Week Ahead – Will the central bank bonanza kill the festive joy or fuel it?
Fed, ECB, BoE and SNB hold their final policy decisions of the year. Will they push back on rate cut expectations? US CPI and flash PMIs will be crucial too. UK GDP, Aussie jobs also on the agenda.