China’s cabinet said on Saturday it would promote a consumption recovery as the major driver of the economy and boost imports, state broadcaster CCTV reported per Reuters. The news highlights cooling of global demand and recession concerns behind the readiness from China policymakers to act.

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The meeting was chaired by China Premier Li Keqiang wherein the State Council, which functions like Cabinet in China, owed to speed up the rollout of foreign investment projects, maintain a stable yuan, ease cross-border travel and help companies to participate in domestic and overseas trade shows, per the news.

It’s worth noting that the Chinese tax authority mentioned that week-long Lunar New Year holiday that ended on Friday propelled consumption by 12.2% from the same period last year.

Key quotes

The cabinet also reaffirmed its support for the private sector and digital platform economy, which have taken a knock from a series of regulatory crackdowns in recent years.

It also discussed measures to support farmers to start spring planting, including subsidies for soybean sowing, CCTV reported.

Market reaction

The news put a floor under the AUD/USD prices as the pair picks up bids to 0.7105 to reverse the week-start downside gap by the press time.

Also read: AUD/USD Price Analysis: Inside day Friday opens risk of a lower close on Monday, 0.7050 eyed