The news out of China is supporting the Australian dollar, and there’s more on Friday

This bombshell from China yesterday:

• China’s government is considering buying unsold homes to ease oversupply
• AUD/USD gaining further on news out of China of a plan to buy millions of unsold homes

More:

• ForexLive Asia-Pacific FX news wrap: China plans to buy ‘millions of unsold homes’

Note that the news out of China was a ‘plan’. It hasn’t been confirmed.

Via Nomura:

• It’s been our view that Beijing will eventually have to address concerns about homes being delivered
• Beijing should reach into its own pockets, even with printed money from the People’s Bank of China, to support the completion of new homes that were pre-sold by developers
• expects that eventually Beijing will set up a special agency and set aside a special fund for such a rescue

Comments via CBA on what we have so far:

• reports have not been confirmed so it is unclear if the purchases will go ahead

AUD/USD and NZD/USD received a boost from the stronger CNH

And, coming up on Friday, China activity data:

• We expect the Chinese activity data to show a continued recovery led by industrial production and public investment, supporting CNH

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