Key details Cuts down payment requirement. Lowers minimum mortgage rates. Restrictions on home purchases will be eased. Required years of social security or income tax payments for non-shanghai residents will be reduced from five to three years. Market reaction In reaction to the above announcement, AUD/USD flirts with intraday highs near 0.6665 while the country’s property sector stocks rally nearly 2%.
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.