AUD bid on Bullock, RBA minutes, Chinese yuan strength

<p>Reserve Bank of Australia Governor Bullock spoke earlier:</p><ul><li><a href="https://www.forexlive.com/centralbank/rba-governor-bullock-says-the-bank-is-increasingly-optimistic-about-the-labour-market-20231120/" target="_blank" rel="follow" data-article-link="true">RBA Governor Bullock says the Bank is increasingly optimistic about the labour market</a></li></ul><p>Bullock made mention that inflation will remain a crucial
challenge over the next one to two years.</p><p>This was very much evident in the minutes to the November meeting released soon after Bullock spoke:</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>Bullock differentiated between supply issues and strong underlying demand:</p><ul><li>
"We're going to see more potential for supply shocks…if
you keep getting them, there comes a point where everyone just
expects inflation to remain high and if inflation expectations
adjust, then it's a problem" </li></ul><p>Said that monetary policy was already restrictive and dampening spending. RBA minutes showed the RBA is concerned about a shift in inflation expectations higher, though, which triggered the rate hike in November. </p><p>AUD moved higher on the minutes and has taken fresh impetus from the much stronger mid-rate for CNY:</p><ul><li><a href="https://www.forexlive.com/centralbank/australian-dollar-jumps-after-strong-reference-rate-setting-for-onshore-yuan-cny-20231121/" target="_self">Australian dollar jumps after strong reference rate setting for onshore yuan (CNY)</a></li></ul><p>Update:</p>

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