Another new low for CNY this afternoon:
The AUD has trended in lockstep with CNY since 2015, though the amplitude of the moves are larger.
The AUD can’t charge on in trend term if the CNY goes the other way because the falling CNY hammers EMs and commodities by making China more competitive across the board.
Needless to say, this time around it will not help trade tensions, either.
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That said, none of these relationships matter until AUD stops trading as a proxy for the S&P500.
