The Chinese Yuan made gains as leaders vowed to boost policy support for the country's economy.

In the onshore and offshore markets, the Yuan strengthened by more than 0.5% as investors were buoyed by comments at the Politburo meeting.

At the time of writing, the Yuan was trading offshore at 7.1444 per Dollar, whilst in the onshore market, it stood at 7.154 per Dollar. In addition, Chinese stocks also soared.

"Overall, the sheer range of issues that the meeting touched upon goes beyond what the markets had anticipated," stated Tommy Xie, head of Greater China research at OCBC.

"While the sweeping breadth of the topics was appreciated, the execution and depth of these policies will be the real test."

In addition, also bolstering the Yuan were China's major state-owned banks selling US Dollars to purchase Yuan in onshore and offshore spot markets on Tuesday, Reuters reports.

The upbeat sentiment from China boosted the Australian Dollar, which increased 0.4% to $0.6767. Whereas in Europe, Sterling edged up 0.22% to $1.2854, the first day of gains following seven consecutive days of losses, the longest run since March 2020.

The Euro rose 0.12% to $1.1076 after falling to a fortnight-low of $1.1059 previously in the session. This was followed by a survey on Monday which revealed eurozone business activity contracted more than forecast this month.

This led traders to reduce forecasts of future rate hikes by the European Central Bank (ECB) later in the year. As it stands, traders predict a 25-basis point rise by the ECB at Thursday's meeting.

The Federal Reserve is also meeting this week and is forecast to hike rates by 25 basis points.

"While the Fed meeting (in July) is likely to be uncontroversial in terms of the decision on interest rates, the Fed's statement and the press conference will be extremely relevant for markets," Guillermo Felices, global investment strategist at PGIM Fixed Income stated.