SYDNEY, Dec 15 Reuters The Australian dollar eased against the greenback on Tuesday, retreating from 212 year highs hit in the previous session, as the U.S. dollar found some support against a falling Chinese yuan.
The Australian dollar, often used as a liquid proxy for risk, fell 0.27 against the U.S. dollar after having hit its highest levels since June 2018 at 0.7578 on Monday.
New Zealands kiwi was lower at 0.7074 on Tuesday, after finishing the previous session at 0.7082.
We are watching signs of stimulus deal and vaccine news, but I think that what youve seen today is…. the USDCNY has rallied, I think thats been at the epicenter and that reverberated across the board, said Chris Weston at Melbourne broker Pepperstone.
The yuan eased to a near twoweek low against the dollar on Tuesday, after the central bank made its biggest ever injection of mediumterm funds.
Chinas statistics bureau said on Tuesday it could make targeted policy adustments as the economy improves. Data on earlier separately showed Chinas factory output grew at the fastest pace in 20 months in November.
The markets might have been hoping for more, said Steven Dooley, Western Unions APAC currency strategist. Losses for the Australian dollar extended after Chinese data, notably industrial production, were reported in line with expectations.
The Australian dollar has benefited in recent weeks from soaring prices for iron ore, the countrys top export, and from signs of an economic rebound…