Nervousness in China regarding the cooling of its housing market weighed on the Australian dollar yesterday, given that China is Australia’s largest trading partner. Despite data out of the world’s second largest economy being broadly positive over the past month, traders are concerned that the long-term sustainability of growth may be hampered by the slow housing market. With the export-reliant Australian economy being so dependent upon the relative health of China, yesterday’s rumours saw the Australian dollar fall against the majority of its peers.
In a similar pattern to what we saw last month with growing tensions in Ukraine, the Russian rouble lost ground over the weekend and into yesterday as uncertainty grew surrounding potential sanctions on Russian trade. With Russia seemingly reluctant to cooperate with investigations into the Malaysian Airline crash, David Cameron and his French and German counterparts said that Europe should look to put trade sanctions on Russia at a meeting later today.
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