The fiscal stimulus will be announced to support economic growth so that they can achieve a 5% Gross Domestic Product target for the year. The Ministry is considering issuing special bonds worth 2 trillion Yuan . Market reaction AUD/USD is paring losses to trade at 0.6740 on these above headlines, still down 0.08% on the day.
How does the health of the Chinese Economy impact the Australian Dollar? China is Australia’s largest trading partner so the health of the Chinese economy is a major influence on the value of the Australian Dollar . When the Chinese economy is doing well it purchases more raw materials, goods and services from Australia, lifting demand for the AUD, and pushing up its value. The opposite is the case when the Chinese economy is not growing as fast as expected.
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