The Australian and New Zealand dollars scaled multi-month peaks on Wednesday while the yuan hit its strongest level in more than a year, as China's aggressive stimulus package provided the latest shot in the arm for risk appetite.

Markets now expect a 59.5% chance of a 50-basis-point rate cut at the Fed's next policy meeting, up from 37% a week ago.

The Australian and New Zealand dollars scaled multi-month peaks on Wednesday while the yuan hit its strongest level in more than a year, as China's aggressive stimulus package provided the latest shot in the arm for risk appetite.

The world’s second-largest economy has struggled to rebound from the pandemic, leading financial authorities to cut interest rates and support the property market.

China's central bank has unveiled a major package of measures aimed at reviving the country's flagging economy. People's Bank of China (PBOC) Governor Pan Gongsheng announced plans to lower borrowing costs and allow banks to increase their lending.

The Australian and New Zealand dollars scaled multi-month peaks on Wednesday while sterling hit its highest in more than two years against a weaker dollar, as China's aggressive stimulus package provided the latest shot in the arm for risk appetite.

China has rolled out a raft of measures aimed at countering a prolonged downturn in its property market that is dragging on the world's second largest economy.

More fiscal support is needed, analysts said, after the PBOC surprised markets by announcing plans to cut a number of rates.

China's yuan hit a 16-month high against the U.S. dollar on Tuesday, after the central bank of the world's second-largest economy revealed new stimulus measures, while the greenback extended declines after soft data on the consumer.