China, the South Pacific nation's top partner for trade and commerce, released strong manufacturing data as the week began, which proved to be beneficial to the Aussie. Australian government bonds were performing strongly on Tuesday following a challenging Monday trade session.
"Central banks have managed to talk down currencies in some emerging markets but attempts in G10 countries, such as Australia, have always failed," one portfolio manager told The Age on Tuesday. "Global interest rates are relative. So if the RBA continues to keep the official cash rate on hold after other countries, such as Britain and the United States, start raising rates then that would effectively be the same as lowering them."
The Aussie also fell against the shared currency of the European Union and the Japanese yen.
Deputy governor Philip Lowe is scheduled to partake in a panel discussion on Wednesday, The Age reports, noting that appearance might impact the performance of the Aussie.
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