Macro-types are enthused by China’s renewed effort to have more influence on global financial infrastructure, assuming they would be up to the task if they were concerned their economy is set to run off the rails. AUD/USD, which is essentially a Chinese futures contract, has rebounded a cent and a half so far today, now at 0.6920; oil has recovered, though it holds below $50 and equities are trying to claw back some lost ground.
A side note: How can China espouse the notion of global economic leadership while running a mercantilist economy (briefly, the idea that countries should simultaneously encourage exports and discourage imports)? The two are wildly incompatible. Until they allow free movement of capital and floating exchange rates, they will remain a powerful, but decidedly second-tier player.
