Australian Dollar Foreign Exchange Rates

The share of China’s merchandise trade settled in RMB with economies excluding Hong Kong, Taiwan and Singapore increased slightly in 2013, but, in comparison, remained relatively low at about 3 per cent. Purchases in both exchanges are subject to total and daily quotas (Table 11.4). Offshore investors are permitted to purchase a total of RMB300 billion worth of SSE stocks . Mainland Chinese investors are permitted to purchase a total of RMB250 billion worth of HKEx stocks (daily quota of RMB10.5 billion) (Table 11.4). Like the RQFII program, the currency exchange takes place in the offshore market, so investors must purchase RMB in the offshore market in order to buy mainland stocks. In addition to the RQFII program, the other key policy initiative aimed at increasing the attractiveness of offshore RMB is the Shanghai–Hong Kong Stock Connect program.
Investors could be worried about the competitiveness of Chinese exports being eroded by a stronger CNY. While this may be true, it would be partially offset by cheaper imports in components and raw materials, as well as stronger demand as the global economy recovers. Other than the trade of goods, a stronger exchange rate can help to attract 换 汇 more international capital into the Chinese equities and fixed income markets. The PBoC announced on October 10 that it will reduce the foreign exchange reserve of banks’ forward FX sales business from 20% to 0%, effective October 12. This measure has been deployed several times in recent years to fine tune the direction of the currency.

On the central bank front, the minutes of the Federal Reserve's February monetary policy meeting will be released at 6am AEDT. "We are not surprised the US government has made such a request, but the request flies in the face of another US demand for a more market driven CNH." "The USD weakened, led by USD/CNH, after news the US government asked the Chinese government to keep the yuan stable," said Joseph Capurso, Senior Currency Strategist at the Commonwealth Bank. After beginning the session at .7130, the AUD/USD initially fell in Asian trade following the release of the minutes from the Reserve Bank of Australia's February monetary policy meeting. The minutes from the Fed's February monetary policy meeting will also be released.
Apart from the fundamentals, moderated somewhat by the fact that our resource exports have mainly Australian dollar cost bases but generate US dollar revenues, there is a speculative overlay to the relationship between our dollar and the renminbi. The Australian dollar, which was trading around 81 US cents in March, has fallen sharply since then, touching 71 US cents last month before stabilising just below US 72 cents. Back in June they started loosening monetary and fiscal policy, albeit in a limited and targeted fashion, hoping an infusion of liquidity and infrastructure investment would sustain a reasonable growth rate. There are fundamental reasons why the currencies have moved broadly in tandem but there is also a speculative trading strategy that links them.
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This could mean the settlement data are overstating underlying demand for RMB. Instead, the decision to let the yuan fall so low most likely suggests that China no longer feels it will be able to placate President Trump and is instead simply responding to supply and demand from global markets. China’s currency is unlike most other OECD nations’ in that its value is directly pegged to the US dollar, rather than ‘floating’ on the open market.
After all, there’s nothing worse than worrying about if you have enough spending money before you head abroad. It can, therefore, be really important to make sure that you get the best AUD to CNY exchange rate possible. The amount of time you’re gone for and whether or not you’ll be working should be factors to consider. You want to take enough while having some cushion space for the unexpected. Just don’t let the competitions yuan exchange rates force you to pay more than necessary.

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Commodity currencies have bounced as a result.” In local trade on Tuesday, the market will be closely watching the release of the minutes of the Reserve Bank’s August board meeting. 3Other offshore centres sometimes refer to their own exchange rate—for example, CNT is used to define RMB exchange rates in Taiwan. However, as there are few restrictions on the flow of RMB offshore, the value of offshore RMB should be equivalent at any point regardless of the location within the offshore market. In the third scenario, we assume that all exports are denominated in US dollars (US$10 billion), but the US$5 billion worth of imports are partly denominated in US dollars (US$4 billion) and partly in RMB . This means that there is a net US dollar inflow of US$6 billion and a net RMB outflow of RMB5 billion . This RMB outflow is a liability on the PBC’s balance sheet , but the PBC must purchase the US$6 billion inflow to maintain the fixed exchange rate, implying additional liabilities of RMB30 billion.