The Australian dollar opened sharply lower today from the Friday’s close as China slashed its growth outlook. As of now, the currency recovered a bit and is trading close to or above the Friday’s closing level.
China announced that it is targeting 6.5%-7.0% growth for 2016. Markets met the announcement with mixed reaction. The news was rather pessimistic, but it was countered by optimism for stimulus measures that the country is likely going to take. The confusing sentiment was unable to keep the Aussie subdued for a long time, and now the currency is rising.
AUD/USD opened at 0.7402 after closing at 0.7431 last week but rebounded to 0.7427 as of 12:35 GMT today. EUR/AUD traded at 1.4758 after closing at 1.4801 on Friday and opening at 1.4844 on Monday.
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