Australian Dollar Shines as China Ends Zero-Covid Policy
Login

Australian Dollar Shines as China Ends Zero-Covid Policy

Estimated Reading Time: 2 minutes
Article Rating:
Based on 1 vote
Login to rate this article.

Azeez Mustapha

Updated:


Tuesday’s holiday-weakened trading saw the Australian dollar (AUD) rise to about $0.675; China’s announcement that it will abolish quarantine rules for incoming tourists beginning on January 8 symbolized the end of its “zero-Covid” policy and boosted market sentiment.

Australian Dollar Comes On Top

The resumption of China’s outward visa issuance on January 8 made the Australian dollar one of the strongest ones today. Following the news, Australia was one of the top 10 travel destinations in China with the fastest-growing search volume, demonstrating the country’s popularity with Chinese travelers. Owners of tourism businesses are optimistic that visitor numbers, which are 95 percent below pre-pandemic levels, will rebound strongly.

Concerned about China’s lack of transparency regarding infections and variations, Japan, India, Italy, and South Korea all announced they would impose stricter COVID-testing procedures on visitors from China. However, the Australian government has yet to comment on the matter.

A recent spike in Australian bond yields also helped the dollar as anticipation grew that Japanese investors could sell Australian securities to remit some money home after the Bank of Japan (BoJ) surprised markets by adopting a hawkish stance.

shutterstock 2133638407 min

At its meeting in December, the Reserve Bank of Australia increased its benchmark interest rate by 25 basis points to 3.1%, bringing borrowing costs to a level not seen in ten years.

The Reserve Bank of Australia (RBA) has now increased the cash rate for eight months running and stated that it anticipates tightening further to reduce inflation.

 

You can purchase Lucky Block here. Buy LBLOCK

 

  • Broker
  • Benefits
  • Min Deposit
  • Score
  • Visit Broker
  • Award-winning Cryptocurrency trading platform
  • $100 minimum deposit,
  • FCA & Cysec regulated
$100 Min Deposit
9.8
  • 20% welcome bonus of upto $10,000
  • Minimum deposit $100
  • Verify your account before the bonus is credited
$100 Min Deposit
9
  • Over 100 different financial products
  • Invest from as little as $10
  • Same-day withdrawal is possible
$250 Min Deposit
9.8
  • The Lowest Trading Costs
  • 50% Welcome Bonus
  • Award-winning 24 Hour Support
$50 Min Deposit
9
  • Fund Moneta Markets account with a minimum of $250
  • Opt in using the form to claim your 50% deposit bonus
$250 Min Deposit
9

Learn to Trade

Never Miss A Trade Again

step 1
Signal Notification

Real-time signal notifications whenever a signal is opened, closes or Updated

step 2
Get Alerts

Immediate alerts to your email and mobile phone.

step 3
Entry Price Levels

Entry price level for every signal Just choose one of our Top Brokers in the list above to get all this free.

Share with other traders!

telegram
Telegram
forex
Forex
crypto
Crypto
algo
Algo
news
News