A bit of surprise at the USD/CNY reference rate setting today - AUD pop
Expectations had converged on a higher than 6.9 mid rate (I'd seen median estimate above 6.9080) …. but not to be.
CNY set stronger than that at 6.8930.
Stronger yuan fix has sent the AUD into a bit of a tizz - a 10 or so point pop.
A weaker yuan is not a positive for the AUD - China is Australia's biggest export market and its better they have a stronger currency against a weaker one (to buy for Aussie stuff …. well rocks anyway).