The economy will rebound in 2023 as epidemic prevention is relaxed and consumption improves, the People’s Bank of China (PBOC) revealed in its Q4 2022 monetary report.

Additional takeaways

“This year's monetary policy should be precise and strong, and not only focus on supporting the expansion of domestic demand, but also take into account longer-term economic growth and price stability.”

“Authorities will adhere to a managed floating exchange rate system based on market supply and demand, and guide funds into areas such as inclusive finance, technological innovation, and green development.”

Market reaction

AUD/USD is off the low but remains confined within a tight range below 0.6750 at the start of the week. The pair is up 0.19% on the day.