Aussie Dollar Soars on China Rate Cut

24 Sep 2024 , 10:04 AM

The Australian dollar stayed near its highest level this year on Tuesday, with the central bank expected to maintain policy steady later and traders looking for any signs of potential near-term easing.

The currency received additional support from stimulus measures announced by the People’s Bank of China. These actions devalued the yuan marginally in offshore trade.

Sterling was close to a two-and-a-half-year high last week, with the Bank of England taking a significantly less dovish stance than the Federal Reserve or European Central Bank.

The yen remained in the middle of previous ranges against the dollar ahead of a speech by Bank of Japan Governor Kazuo Ueda, which could provide clues about the pace of interest rate hikes, after the central bank suggested it was not in a rush to tighten more.

The Australian dollar moved higher to $0.6839 as of 0212 GMT, extending a 0.45% recovery from the previous session, when it touched $0.6853 for the first time since December 28.

The euro sought to recover from an almost 0.5% drop overnight, as dismal business activity indicators pointed to further rate cuts.

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