China to inject $69 billion into four big banks to strengthen financial sector

China’s finance ministry will inject 500 billion yuan ($69 billion) into four of the nation’s largest state banks, following through on Beijing’s earlier effort to strengthen the financial sector, per Bloomberg.

Bank of Communications Co., Bank of China Ltd., Postal Savings Bank of China Ltd. and China Construction Bank Corp. plan to raise up to a combined 520 billion yuan ($72 billion) through private share placements, with the Ministry of Finance being the top investor in all the proposed private placements, subscribing to 500 billion yuan worth of shares in total.

One of the most significant factors for the Australian Dollar (AUD) is the level of interest rates set by the Reserve Bank of Australia (RBA). Because Australia is a resource-rich country another key driver is the price of its biggest export, Iron Ore. The health of the Chinese economy, its largest trading partner, is a factor, as well as inflation in Australia, its growth rate and Trade Balance. Market sentiment – whether investors are taking on more risky assets (risk-on) or seeking safe-havens (risk-off) –