China's reforms help drive the Kiwi and Aussie Dollars higher Monday.

LTG GOLDROCK REVIEWS: Both the Aussie and Kiwi Dollars are going to benefit from any positive economic news out of China particularly anything that relates to growth and opening up of the Chinese economy to international investment and trade. Yesterday we saw wide ranging reforms that completely surprised the markets and it was on these announcements that both currencies moved higher. Some of the major reforms that the market liked were things such as a potential change to the one child policy that was seen as a strong indication China could grow once again at higher growth rates. The reforms set out a seven year program to define the long term direction of the Chinese economy under the new government.

According to the AFR other promises within the reforms relate to property ownership and a need to tackle state and local enterprises. In a nutshell any good news for China is only likely to add more strength to the Aussie and Kiwi Dollars.

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