The Australian dollar is set for sharp monthly gains again on Friday as expectations grow that the central bank will adopt a more hawkish stance, while the yuan lost momentum after China capped the currency's long rally. This, along with the yuan's exchange rate being fixed at a lower-than-expected level, caused the yuan to fall 0.2% domestically to 6.8553 against the dollar, ending a 10-day winning streak. The People's Bank of China took action on Friday to slow the yuan's rapid rise, saying it would cancel reserve requirements for some foreign exchange futures, seen as a way to encourage dollar purchases.
