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

A very strong yuan setting today:

• PBOC sets USD/ CNY central rate at 7.1406 (vs. estimate at 7.1677)

AUD catching a wee bid:

AUD/USD back to the high it hit after the RBA minutes earlier:

• RBA minutes show intense focus on inflation and inflation expectations risks

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).