According to Reuters, China's central bank announced on Thursday that it would cut the amount of cash that banks have to hold as reserves for the second time this year to boost liquidity and support the nation's economic recovery. 

On Friday, the People's Bank of China (PBOC) said that it would cut the reserve requirement ratio (RRR) by 25 basis points (bps) for all institutions except those that have implemented a 5% reserve ratio. This follows a 25 bps cut for all banks in March and it comes as the world's second-largest economy struggles to maintain its post-pandemic recovery.

Market reaction

This statement had little to no impact on the Aussie's performance against its rivals. At the time of writing, AUD/USD is trading at 0.6435, down 0.09% on the day.