TOKYO, Sept 24 Reuters The Australian dollar rose to its highest level this year on Tuesday as the central bank reiterated its determination to tame stubborn inflation, while the yuan climbed to a 16month peak after fresh stimulus steps from China.

The Reserve Bank of Australia kept interest rates steady as widely expected, but traders hoping for hints on when a cut might be coming were disappointed as the central bank stressed it remains resolute in its determination to return inflation to target, and signalled further hikes remain an option.

The RBA39;s decision today amounts to another hawkish hold, which fits our view that it39;s still too early for a dovish pivot, said Tony Sycamore, an analyst at IG. However a shift can occur very quickly … and we think that the possibility of a rate cut in December is now underpriced.

Also sensitive to the outlook for China39;s economy, the Aussie received some additional support from stimulus measures announced by the People39;s Bank of China.

It climbed as much as 0.46 to 0.68695, its strongest level since Dec. 28. It then pared gains to 0.68435 as of 0540 GMT after RBA Governor Michele Bullock said a hike wasn39;t explicitly discussed at the meeting.

China39;s fresh stimulus  including a planned 50 basis point cut to banks39; reserve requirements, the signalling of potentially more easing in lending rates as well as property market support measures helped boost the yuan.

Although the yuan initially weakened in…