AUD/USD continues to gain following announcement from China of plans to purchase millions of unsold homes

China is considering a proposal for local governments across the country to buy millions of unsold homes in what would be one of its most ambitious attempts to save a beleaguered real estate market, according to people familiar with the matter.

This is according to a Bloomberg report.

This gives a boost to the yuan and also to the AUD/USD. The EUR, NZD, GBP and CAD are also up against the big dollar.

Home sales in China have fallen by almost half, leaving “millions of homes unsold.” Although the plan is considered preliminary, if it comes to fruition it will be a lifeline for many companies in China’s real estate sector. At the cost, of course, of increased debt for the Chinese public sector.