We get excited in Australia when we get in the news in other countries. Look at me!
So, great news this morning with the Wall Street Journal running with: Aussie Falls to Seven-Month Low vs. U.S. Dollar
It’ll be high-fives all round at the RBA!
- Commodity markets fell after China’s finance minister, Lou Jiwei, said earlier in the day that the government won’t make radical changes to its policies based on weakness in one economic indicator, dashing hopes for a stimulus program.
- “Australia is one of the countries among all commodities exporters that has the highest exposure to China, in terms of exports and the general trade linkages between the two countries,” said Martin Schwerdtfeger, FX strategist at TD Securities. Mr. Lou’s comments “had an impact on commodity prices, and the Australian dollar has been one of the casualties.”
- The Aussie also lost ground after a report by the firm of economist Nouriel Roubini said the Australian currency would plunge next year.
(ps. Here’s the Roubini story from the late afternoon press in Australia yesterday: $A to dive as growth skids, tips Roubini and Australian dollar hits seven-month low
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The linked article at the Wall Street Journal is gated, but the Australian Financial Review and Sydney Morning Herald stories are not.
