How are you reading the Australian story right now?
Australia's economy grew 0.4% in the June quarter (report) while the RBA holds at 4.35% (report). China's data adds the third leg.
What's your read?
- how growth, rates and China balance out
- the AUD levels you're watching
- what would change your view
Background: commodity currencies.
Background: Commodity currencies explained: the Australian, New Zealand and Canadian dollars and the Norwegian krone
Why the currencies of big commodity exporters move with iron ore, dairy and oil prices, what each country actually exports, and when the link weakens.
What are commodity currencies?
Currencies of countries where commodity exports are a large share of trade, such as the Australian dollar (iron ore), the New Zealand dollar (dairy), the Canadian dollar (oil) and the Norwegian krone (oil and gas).
Why does the Australian dollar follow China?
Iron ore is Australia's largest export and much of it is sold to China, so Chinese demand and data affect Australia's export income and its currency.
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