AUD/USD gaining further on news out of China of a plan to buy millions of unsold homes

China is considering a proposal to have local governments across the country buy millions of unsold homes in what would be one of its most ambitious attempts to salvage the beleaguered property market, according to people familiar with the matter.

Thats according to a Bloomberg report.

Its giving a lift to the yuan and also AUD/USD. EUR, NZD, GBP, CAD are also ticking higher against the big dollar.

China’s home sales have dropped by nearly half, leaving “millions of unsold homes”. While the plan is said to be preliminary if it comes to fruition it’ll be a lifeline for many property sector firms in China. At the expense of more debt for China’s public sector, of course.

This article was written by Eamonn Sheridan at www.forexlive.com.