For the second time this year and the fourth time since 2010, the Chinese government raised interest rates by 25bp, bringing its lending and deposit rates to 6.31 and 3.25 percent. Like many other countries around the world, China is worried about rising inflation pressures and the negative impact that it could have on [...]

Posted in china, china second largest economy, chinese reserve ratio, forex blog 1 Comment »

China raised their reserve requirement ratio today for the third time this year and the ninth time since the beginning of 2010. I don’t have time to write much about this but I want to point out that Chinese is having a diminishing impact on the market.
This is what I wrote last month:
With [...]

Posted in china, chinese reserve ratio No Comments »

With each Chinese rate hike, there has been a smaller and smaller impact on the currency market. The first rate hike back in October elicited the biggest reaction because it was the first rate hike in nearly 3 years. At the time, all of the pro-cyclical currencies plunged against the U.S. dollar with [...]

Posted in china, chinese reserve ratio, chinese yuan, forex blog 4 Comments »

I have been bullish Australian dollars for some time not only because I have witnessed first hand the strength of the Australian economy earlier this year but also because the central bank is slated to raise interest rates again in Feb. Australia’s recovery is largely thanks the expansion in China. Earlier this week, [...]

Posted in Australian Dollar, aud/usd, australian dollar forecast, chinese reserve ratio 5 Comments »