China's central bank interest rate increases unexpectedly detonated Forex AUD fell African-American

China's Central Bank on Tuesday (19) accidents announced increases deposit and loan interest rate, currency and other African-American AUD further expansion of the decline in the dollar index rebounded to 77.55 high.

China's Central Bank accident rate hike

China's Central Bank announces financial institutions one-year deposit benchmark interest rates by 25 basis points, from the existing 2.25% to 2.50%; one-year lending benchmark interest rates by 25 basis points, from the existing 5.31% to 5.56%; other grades of deposit and loan interest rate adjusted accordingly.

This is the end of 2007 to the end of 2008 for the fifth time, the people's Bank of China cut interest rates since the first time to adjust to the benchmark interest rate, interest rate decisions will be October 20.

Essence securities macroeconomic analyst said: "it is imperative that this interest is to make timely correction of negative interest rates, might also be on the CPI in September. It is expected that negative interest rates will gradually, without excluding the further rise in the second quarter of next year. In addition, the United States midterm elections, the Renminbi appreciation rates may not be as big as previously. ”

As prices rise of rebound in February this year, China has been continuous since 7 months "negative interest rates", August Chinese consumer price index (CPI) rose to 3.5%, and then create a new high, also during the year and set a September 2008 (then up 4.0% high point since.

AUD or be hit

At present, China's Central Bank monetary policy take "stable prices, full employment, economic growth and balance of payments of many targeting". Xiaochuan previously said, economic growth and low inflation, and other objectives cannot be achieved, sometimes these goals conflict, between May and relations are very complex and, therefore, monetary policy objective should move the camera.

China's Central Bank announced that base rate-regulated deposits and loans, the dollar further rebound, African-American continue callback. AUD/USD dropped to a low of 0.9830 euro/dollar also refresh, as low as GBP/USD 1.3879, the further expansion of the decrease in below 1.58, minimum touch 1.5764.

UBS (UBS) said that the Chinese central bank interest rate increases, that China's unexpected monetary tightening by the obvious intent.

It pointed out that the foreign exchange market risk appetite emotions still fade, the message will be further developed to AUD to suppress.

Analysts noted that the Chinese central bank interest rate 25 basis points of great blow for AUD, Australia is a large trading partner countries, China's rise may enable the market to challenge China's economic growth is expected, and to bring down pressure. AUD

The analysts pointed out that the AUD/USD touched days new low 0.9808, fell after further at 0.9800 down.

Barclays Capital us $, AUD/if fell 0.9800 integer, next empty target will point to 0.9710 and 0.9660.

Beijing time 19: 16, the dollar index reported 77.47, AUD/USD reported 0.9824/27, the euro/dollar reported 1.3891/94.