Australian dollar jumps after strong reference rate setting for onshore yuan (CNY)

<p>A very strong yuan setting today:</p><ul><li><a href="https://www.forexlive.com/centralbank/pboc-sets-usd-cny-central-rate-at-71406-vs-estimate-at-71677-20231121/" target="_blank" rel="follow" data-article-link="true">PBOC sets USD/ CNY central rate at 7.1406 (vs. estimate at 7.1677)</a></li></ul><p>AUD catching a wee bid:</p><p>AUD/USD back to the high it hit after the RBA minutes earlier:</p><ul><li><a href="https://www.forexlive.com/centralbank/rba-minutes-show-intense-focus-on-inflation-and-inflation-expectations-risks-20231121/" target="_blank" rel="follow" data-article-link="true">RBA minutes show intense focus on inflation and inflation expectations risks</a></li></ul><p>The reason AUD tends to like a strong yuan is that China is the destination for the biggest chunk of Australia's exports, a strong yuan gives China more leeway to buy Aussie exports (iron ore and what have you mainly). </p>

This article was written by Eamonn Sheridan at www.forexlive.com.