Australian stocks are having a wild session as efforts to strengthen the yuan appear to have failed

Daniel Berehulak GettyImages

Having traded a low of 4,940 this morning in the wake of the bad night on Wall Street the ASX 200 traded back above 5,000 this afternoon after the Chinese Central Bank set the reference rate for the Yuan stronger than last night’s close.

The set of 6.5636 against yesterday’s close above 6.59 looked like a nice move PBOC and one that signalled the Chinese central bank was not going to let the Yuan go into free-fall.

But the Yuan has quickly weakened back to 6.5881 sapping the initial euphoria on the ASX and knocking the 200 index back to 4,982 down 0.56% on the day. chart

It’s not universally bad news for stocks. Crude oil is up 2.55% and copper is up 0.6% which has helped the miners and the energy sector which are currently the only sectors in the black on the ASX.

BHP spin-off South 32 is up 2.75%. LNG Ltd is up 2.19%, Woodside petroleum is 2.56% higher, and Rio Tinto is up 2.51%.

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