Investing.com - The Australian dollar gained on Tuesday after the central bank said the economy was adjusting to a weaker currency, a sign that it was re-balancing away from a lapsing boom in mining.
Australia's economy is adjusting to a weaker currency and along with data that dynamic will set the tone for future policy, the Reserve Bank of Australia said in the minutes of its July board meeting released on Tuesday.
AUD/USD traded at 0.7378, up 0.08%, after the minutes, while USD/JPY changed hands at 124.45, up 0.05%.
Elsewhere, China reported that house prices fell 3.7% year-on-year in July, compared to a 4.9% dip in the previous month.
The US dollar index, which tracks the greenback against a basket of six major rivals, was last at 96.85, up 0.02%.
Overnight, the dollar remained modestly higher against a basket of major currencies on Monday, shrugging off a weak reading of U.S. manufacturing activity as concerns over the recent devaluation of the yuan eased.
The greenback showed little reaction after a report showing that manufacturing activity in the New York region slumped to its lowest level since November 2009 this month as new orders fell sharply.
This was offset by another report showing that US house builder sentiment rose to its highest level in nearly a decade this month.
The greenback remained supported as investors looked ahead to Wednesday’s minutes of the Federal Reserve’s July meeting, which it was hoped would provide more clarity on its plans to hike short-term interest rates for the first time since 2006.
Overall market sentiment was boosted as concerns over a prolonged depreciation of the yuan eased after China's central bank on Monday set the midpoint rate slightly firmer than at Friday’s close.