That is what we’ve been hearing anecdotally here in Australia for some months now, and it seems to be borne out by the latest economic evidence; higher imports and increased lending suggest that domestic demand is strong and growing. It’s still a long way away from replacing the developed markets in North America and Europe, but whilst there will be bumps along the way, growth in still much more likely to come from China and India rather than the developed economies.
The AUD hasn’t really reacted this morning, and is more worried about what’s happening in the EUR, but bulls should probably be considering picking up some smalls at levels near 1.0400.
