PBOC cuts its 14-day reverse repo rate to 2.35% vs. 2.55% previous

Dhwani Mehta FXStreet

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.

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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