Early Tuesday in Asia, the People's Bank of China (PBoC) cuts its benchmark Loan Prime Rates (LPRs) by 10 basis points (bps), matching market expectations. That said, the one-year LPR was reduced from 3.65% to 3.55% while the five-year LPR currently stands at 4.20% from 4.30% previous readings.

The news exerts downside pressure on the AUD/USD as it renews intraday low near 0.6843, down 0.10% on a day by the press time.

Also read: AUD/USD bears take a breather around mid-0.6800s with eyes on RBA Minutes, PBoC

About PBoC Interest Rate Decision

The PBoC Interest Rate Decision is announced by the People´s Bank of China. If the PBoC is hawkish about the inflationary outlook of the economy and rises the interest rates it is positive, or bullish, for the CNY. Likewise, if the PBoC has a dovish view on the Chinese economy and keeps the ongoing interest rate, or cuts the interest rate it is negative, or bearish.