The Australian dollar rose after China said it's considering forming a state-backed stabilization fund to support its stock market, easing concerns over the Asian nation's economic outlook. The dollar fell.
The Aussie advanced against most of its Group-of-10 peers after news of the stabilization fund, which may be granted access to total capital in the sum of hundreds of billions of yuan, according to people familiar with the matter. The dollar declined with Treasury yields.
The Aussie is being bought because of "hopes that a series of growth support measures will limit a slowdown in China's economy," said Takuya Kanda, general manager at Gaitame.com Research Institute in Tokyo. But "concern over China's property market is so strong that I don't think market sentiment will remain supported for long".
AUD/USD rose as much as 0.3% to 0.6334.
The Bloomberg Dollar Spot Index declined 0.1% after jumping 0.7% on Thursday.
The yield on 10-year Treasuries slipped two basis points to 4.67%
Source : Bloomberg
