The Australian dollar moves like a cat on a hot tin roof

• The Australian dollar endured a fierce trading session Tuesday, reversing sharply after falling earlier in the day as the Chinese yuan suddenly strengthened
• Chinese markets will likely dictate the market's direction despite the publication of major economic data in Australia. 19659002] US markets to close for Independence holiday

The wild dollar swings continued on Tuesday, pulling higher in the second half of the session after falling to its lowest level since 18 month monday.

Much of Aussie's movements mirrored those of the Chinese yuan, a trend that should be repeated today despite the publication of key Australian economic data.

Here is the dashboard at 7am in Sydney.

AUD / USD 0.7383, 0.0044, 0.60%
AUD / JPY 81.63, 0.25, 0.31%
AUD / CNH 4.9205, 0.0159, 0.32%
AUD / EUR 0.6332, 0.0027, 0.43%
AUD / GBP 0.5595, 0.0012, 0.21%
AUD / NZD 1.0930, 0.0006, 0.05%
AUD / CAD 0.9701, 0.0025, 0.26%

After suffering further sales pressure as the Chinese yuan fell to its lowest level in 11 months, Aussie reversed these losses, then to Asia in the late afternoon. In a statement released Tuesday on the People's Bank of China (PBoC) website, Governor Yi Gang said the bank is closely monitoring currency market fluctuations and "would seek to keep the yuan stable and reasonable." ". 19659005] Before this statement falls, the USD / CNH – the listed yuan – has reversed after reaching a 11-month high of 6.7326 in the sessi By increasing suspensions, the PBoC would have ordered Chinese state banks to intervene to support the yuan.

The USD / CNH is currently trading at 6.6623.

While yuan movements were influencing broader markets, Aussie managed to outperform the pack, in part because of a surprise decision by the Reserve Bank of Australia (RBA) at the time. his monetary policy meeting in July.

Although official interest rates remained unchanged at 1.5%, the RBA gave up its warning that "an appreciating exchange rate should result in a slower recovery of the interest rate. economic activity and inflation than expected ".

indicates that the RBA is satisfied with the recent fall of Aussie, and less concerned that it will slow down inflation or economic growth. Naturally, traders reacted by buying.

With the yuan, this helped raise the AUD / USD up to .7404 before giving back ground at the end of the session

. US stocks, motivated by renewed concern over trade tensions between the United States and China.

Regarding the coming day, traders will be busy navigating both Chinese financial markets and

On the national data register, Ai Group will publish its service performance index at 8:30 the morning AEST

which will be followed by the main event – the publication of retail sales and international trade. May figures from the ABS – at 11:30 AMEST

This 10 second guide has more on what to expect.

Outside of Australia, the markets will also receive a series of PMI services reports from China, Japan, the United Kingdom and Europe throughout the session.

US markets will also be closed for Independence Day, which will help lower market liquidity levels and, as a result, increase volatility.

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