All Aussies Eyes on China - Forex News by FX Leaders
I'm urging you, please stop fighting US and China

All Aussies Eyes on China

Posted Wednesday, May 23, 2018 by
Skerdian Meta • 1 min read

We know the Australian economy is heavily connected to China. China imports most of the Australian exports, particularly raw material, but there’s also a lot of Chinese investment in Australia.

The RBA (Reserve bank of Australia) Governor Lowe just reassured everyone of that. Of course, the Aussies don’t want China to get into trouble, so they’re happy that the trade war between Australia and China is coming to an end. Of course, China will have to pay up, remove some tariffs and import more US product.

Lowe said:

  • The biggest threat to the Australian economy is China

  • Political escalations should be avoided

  • De-escalation mechanisms needed

  • Australia won’t be hurt if China increases imports for the US

I’m not too sure about the last point though. If China picks up more agricultural imports from the US as Trump suggested on Monday, then I’m sure the demand for billions of dollars of food and food products that Australia exports to China will fall. Lowe didn’t touch the monetary policy so the Aussie is just waiting for other pairs to make a move at the moment.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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