The Australian and New Zealand dollars rose on Wednesday after China’s central bank said it cut banks’ reserve requirement ratio by 50 basis points as it stepped up its effort to support the economy.
The actively traded, growth-linked currencies rose as a result. The Australian dollar climbed to $0.7843 from around $0.7785 beforehand. The New Zealand dollar also rose to $0.7422 from around $0.7380, up 0.8 percent on the day.
Earlier in the day, China’s central bank said it injected 375 billion yuan ($60.0 billion) worth of three-month loans into large Chinese banks in November and December.