Yes, the center point can even be dragged outside the selected image a still serve as a reference, as seen here:
This how to create the pinwheel shown above:
1. Open a new file of appropriate size to hold the finished circular final image. (File > New)
2. Choose the master image file and select the object.
3. Choose the Move tool. Click and drag the object onto the new file and in position near the top, centered (approximately) left and right.
4. Select the object.
5. Hold down Cmd+Opt+Shift and choose Edit > Free Transform. Be sure to release the mouse before releasing the keyboard keys.
6. Hold down the Shift key to ensure a vertical drag and drag the center mark in the image below the object about 1/4”. (See blue arrow) In the Options Bar set the angle to 30. (Thirty into 360 degrees will produce a 12 image pinwheel.) Then click on the Commit checkmark in the Options bar.
7. Hold down Cmd+Opt+Shift and strike the T key repeatedly to complete the circle of images.
8. Select > Deselect to remove the marching ants. .