AUD/USD flows: PBoC Suprise Cut in MLF

The PBoC has cut 1yr MLF to 2.3% from 2.5%. It came as a surprise because of the magnitude is greater than the earlier cut on Monday. Other Chinese banks also cut their deposit rate by 0.1-0.2%. It looks like to be another attempt form the Chinese government to support the local economy but the equity market is not cheering with broad sentiment negative.

AUD/USD is dragged 0.57% lower at 0.6245, being double teamed by poor sentiment and falling Yuan.