International Monetary Fund representatives have given China strong signals that the yuan is likely to soon join the fund’s basket of reserve currencies, known as Special Drawing Rights, Chinese officials with knowledge of the matter told Bloomberg News this week. Here’s a primer on what that means.
This news reported by Bloomberg over the weekend, is likely to give the AUD a bit of a lift to start the week. Whether these gains manifest themselves versus the USD or we so more of the same AUD gains against the EUR and JPY, well that remains to be seen.
I’m starting the week cautiously with a small long position in AUD/USD. Let’s see how it develops.
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