Australian dollar has rebounded

THE Australian dollar has rebounded from its losses and is little changed after China moved the yuan’s value down for a third day in a row.

Australian one dollar coins over black background.

THE Australian dollar has rebounded from its losses and is little changed after China moved the yuan’s value down for a third day in a row.

At 1200 AEST on Thursday, the currency was trading at 73.84 US cents, up from 72.62 cents on Wednesday.

China’s central bank devalued the yuan by 1.1 per cent to 6.4010 yuan on Thursday, following a 1.6 per cent devaluation on Wednesday and 1.85 per cent devaluation on Tuesday.

The Australian dollar suffered one US cent falls on both of the previous days China devalued its currency, but shook off the latest action.

HC Securities senior private adviser Mark Lennox said the Aussie dollar knee jerked lower in the short term, but has since risen strongly.

“(That indicates) the movement in the yuan will make it harder for the US Federal Reserve to maintain their tightening bias in the near term as China joins the devaluation race,” he said.

KEY MOVEMENTS:

One Australian dollar buys:

* 73.84 US cents, from 72.62 cents on Wednesday

* 91.84 Japanese yen, from 90.61 yen

* 66.28 euro cents, from 65.53 euro cents

* 111.63 New Zealand cents, from 111.24 NZ cents

* 47.29 British pence, from 46.62 pence

Government bond yields:

* CGS 5.5pct Jan 2018, 1.908%, from 1.850%, on Wednesday

* CGS 4.25pct April 2026, 2.817%, from 2.751%

Sydney Futures Exchange prices:

* Sept 2015 10-year bond futures contract, at 97.225 (implying a yield of 2.775 per cent), down from 97.305 (2.695 pct)

* Sept 2015 three-year bond futures contract, at 98.050 (1.950 per cent), down from 98.120 (1.880 per cent)

(*Currency closes taken at 1700 AEST previous local session, bond market closes taken at 1630 AEST previous local session)

Source: IRESS