Citing people familiar with the matter, Bloomberg News reported on Tuesday, China is weighing new stimulus and higher deficit to meet its annual growt
h target. The Chinese authorities are mulling the issuance of at least CNY1 trillion of additional sovereign debt for spending on infrastructure such as water conservancy projects, the sources added.
Market reaction China’s stimulus news adds to the risk-on market environment, which put a fresh bid under the Australian Dollar. The AUD/USD pair jumped nearly 35 pips on the above report, testing 0.6430 before retreating to 0.6420, where it now wavers. The spot is up 0.17% on a daily basis.
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