China's Stimulus Boosts Risk Appetite, Lifts Aussie and Kiwi Dollars
The Australian and New Zealand dollars hit multi-month highs as China's latest stimulus measures boosted risk appetite. The U.S. dollar, a traditional safe-haven, weakened due to expectations of further rate cuts. Market reactions indicated that China's aggressive moves exceeded expectations, benefitting currencies linked to its economy.
The Australian and New Zealand dollars climbed to multi-month highs on Wednesday, buoyed by China's aggressive stimulus package aimed at reviving its economy. The yuan hit its strongest level in over a year, reflecting heightened risk appetite among investors.
The U.S. dollar faced downward pressure following China's stimulus, with market participants anticipating another substantial rate cut in November. This shift in sentiment encouraged investors to move away from the traditionally safe-haven greenback.
The Australian dollar reached $0.6908 in early trading, its highest point since February 2023, while the New Zealand dollar peaked at $0.63555, a nine-month maximum. Market experts noted that China's financial measures were more impactful than expected, particularly for currencies tied to its economy.
(With inputs from agencies.)