China's data and the Australian dollar: still connected?

The Australian dollar has long been treated as a proxy for Chinese demand, because China is Australia's biggest export market and iron ore is its biggest export.

The latest numbers give plenty to talk about: China's exports jumped 25% in August, Chinese producer prices were 3.8% higher than a year earlier, and Australia's economy grew 0.4% in the June quarter.

  • Do you still watch Chinese releases when trading AUD/USD?
  • Has the link weakened or strengthened in your experience?
  • Do you use AUD/JPY or AUD/NZD to separate China-related moves from US dollar moves?

Background: China's August exports, China's inflation data and Australia's GDP.

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