Right on cue the expected slow down in the Chinese economy has dragged its fellow Asian currencies lower as it continues with its miserly 4-7% growth, depending on who you go by, but exports fell by 8% as the sorry roundabout continues. The Chinese spend less with the West, the West have less money to buy their goods and so on. There is also concern at the levels of debt in the country as the population get to experience all aspects of capitalism.
This continues to impact the Australian Dollar, whose economy is heavily dependent on the Chinese’s insatiable appetite for their commodities.
Meanwhile also to script the Bank of England and the US Fed march on towards the mush anticipated, and quite frankly seriously old news of their respective interest rate rises. Both expected before the end of the year. The Pound remains strong due to the endless Forward Guidance commentary given, while the FED is still just giving clues so the Dollar is a bit more volatile in response, Dollar up against its peers.
