“China's economy is facing downward pressure due to COVID-19 and external shocks, and the central bank will "increase implementation of prudent monetary policy" to support the real economy, China's central bank, People’s Bank of China (PBOC), Governor Yi Gang said,” said Reuters during the weekend.

The news adds that PBOC Governor Yi made the comments via video link during the meeting of G20 finance leaders in Indonesia, the People's Bank of China said in a statement on Saturday.

Elsewhere, Reuters also quotes a commentary that appeared in China’s state-owned Securities Times while mentioning, “China's monetary policy has ample room and sufficient tools, including further cutting banks' reserve requirements, to cope with new challenges amid a shaky economic recovery.”

It’s worth noting that Xinhua quotes Chinese Vice Premier Liu He as urging stronger steps be taken to boost employment.

FX reaction

The news helps AUD/USD prices to keep Friday’s recovery beyond 0.6800.

Also read: AUD/USD sees upside above 0.6800 as focus shifts to RBA minutes