The People's Bank of China (PBOC) cut to the reserve requirement ratio (RRR) takes effect today.  

The Chinese central bank announced a 50 bps cut to the RRR on January 24, which would bring the weighted rate from 7.40% to 6.90%. The PBOC rate cut decision is expected to pump in CNY1 trillion in the economy.  

Market reaction

Despite the Chinese easing, AUD/USD remains on the defensive near 0.6500, as of writing, thanks to the escalating Middle East geopolitical tensions. The pair is down 0.17% on the day.