Australia’s reversal of fortune

The Aussie dollar has strengthened more than 10% against its US counterpart in recent months. But concerns over slowing Chinese growth spell trouble for Australia's economy.

The Australian dollar is flying high. It has gained more than 10% since last autumn and now buys 1.05 American dollars. But the signs of a reversal are mounting.

One key influence on sentiment towards the Australian dollar is China, which now takes almost 40% of Australia's mineral exports and 23% of Australia's overall exports. Investors "have every justification to be concerned about the decided downshift in China's growth performance", says Fxpro.com.

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