China: Ex-SAFE official says should adopt a strong yuan policy

China should adopt a strong yuan policy says an ex-State Administration of Foreign Exchange official

• Strong yuan policy doesn't mean pursuit of one-way appreciation
• Currency policy should give way to monetary policy when internal and external targets conflict
• Fear of yuan fluctuations should be overcome
• Authorities should withdraw from forex market intervention at appropriate time

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Guan Tao, former official from State Administration of Foreign Exchange, writes in 21st Century Business Herald, via Bloomberg

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A stronger yuan should be an AUD positive (China getting more of Australian exports for the equivalent amount of yuan). If you'll excuse me, I'm just going out into the back yard to dig up some more iron ore.

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AUD up a few points:

NZD up also (stronger PPI was a bit of a surprise earlier)