The People’s Bank of China (PBOC), in an unexpected move, cut the rate on 14-day reverse repurchase agreements to 2.35% vs. 2.55% previous, as it resumed the use of the liquidity tool for the first time since February.
Meanwhile, the Chinese central bank kept the rate on the 7-day reverse repo unchanged at 2.20%.
The PBOC injected 70 billion yuan ($9.88 billion) via 14-day reverse repos while it pumped in 50 billion yuan through 7-day reverse repos this Thursday.
AUD/USD finding some support
The AUD bulls are offered some support on the PBOC liquidity injections and rate cut, as AUD/USD recovers from daily lows of 0.6838, reached after the Australian jobs report disappointed across all indicators.
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