Commodity linked currencies gained support after investors’ expectations grew that the People’s Bank of China is on the verge of providing more economic stimulus. Such a move would not just lift the Chinese economy which has been struggling with lackluster growth, but would help those economies which are reliant on Chinese growth, including one of China’s key trading partners, Australia.
As reported at 8:51 am (GMT) in London, the AUD/USD was trading at $0.7772, edging lower and away from the session high of $0.7842; the NZD/USD had earlier gained about 0.3% to trade at $0.7430 but later slipped to $0.7400. Another commodity-linked currency, the Canadian Dollar, edged higher against the Dollar and was trading at C$1.2479.
Greek Debt Deal Weighs on Euro
Investors focus remains firmly on Greece where the Finance Minister is about to offer a comprehensive proposal to the Troika in the hopes of returning with a modification to the existing bailout loan. Analysts say that until a definitive response to the Greek situation is forthcoming, that the Euro will remain under pressure; the EUR/USD was trading lower at $1.1281 in London trade, close to the session low of $1.276,
