Analysts were basically evenly split on expectations of a cut to the interest rate on today's MLF operation from the People's Bank of China:
But, the rate remained at 2.85%
The unchanged rate will dampen expectations of a cut to the 1- and 5-year Loan Prime Rates (LPR) setting coming from the PBOC on the 20th (i.e. Friday this week).
AUD/USD has traded higher to open the week, gaining a few points but has given just a few back. Further stimulus from the People's Bank of China is a positive for the AUD, at the margin, but when that further stimulus doesn't eventuate the potential positive dissipates. Having said all this, the moves are not large: