The basis for current strength of the Australian economy, and therefore the AUD, is the boom in the export of base metals, coal and gas, mainly to the growing Chinese economy.
The Chinese are inveterate gamblers, more so than the Wall Street bankers. If the Chinese economy takes a nosedive (most probably caused by growing too fast), the Australian economy will be trashed. Australia is just way far too depedent on her minerals exports.
The copper price is just a good indicator of how the Australian economy is travelling. Commodities prices can be volatile, and that, very unfortunately, is what the Australian econmomy is dependent on.
Like the U.S., a huge proportion of Australian manufacturing potential was exported to China. There WILL be serious consequences for Australia, if the Chinese economy nosedives.
The Chinese are inveterate gamblers, more so than the Wall Street bankers. If the Chinese economy takes a nosedive (most probably caused by growing too fast), the Australian economy will be trashed. Australia is just way far too depedent on her minerals exports.
The copper price is just a good indicator of how the Australian economy is travelling. Commodities prices can be volatile, and that, very unfortunately, is what the Australian econmomy is dependent on.
Like the U.S., a huge proportion of Australian manufacturing potential was exported to China. There WILL be serious consequences for Australia, if the Chinese economy nosedives.



















