 Australian Dollar strengthened broadly in Asian session today, shrugging off lackluster retail sales data. Instead, Aussie is responding positively to Shanghai's announcement of significant policy measures aimed at boosting the housing market. Yesterday, China's commercial and financial hub declared it would relax home purchase restrictions and provide subsidies for new flat buyers. This move is designed to invigorate the city's real estate sector and comes less than two weeks after the central government introduced a rescue package to prevent a property market collapse. Conversely, Dollar is trading broadly lower as last week's rebound attempt has faded. There has been no new information to suggest a shift in Fed's policy outlook. Fed fund futures still indicate a 50/50 chance of a rate cut in September. As financial markets are digesting these expectations well, risk-on sentiment could return, putting pressure on the greenback. |
