It is widely accepted that China is Austalia’s number one trading partner.
Indeed just last week the RBA increased the Chinese currencies weight within the TWI from 23.55% to 24.85%.
Yesterday’s trade data bought this importance, perhaps reliance, on China into focus with the The Commonwealth Bank’s Global Markets Research Team reporting that:
“exports to China hit a record high during over the month, surpassing $9bn for the first time. Exports to China are up a whopping 58% on year ago levels. Its share of exports from Australia also hit a record high, surpassing 40% for the first time.”
“These numbers highlight just how important the Chinese economy is to Australia’s growth at present. And why economic data out of China is having an increasingly bigger impact on the AUD and the Australian equity and interest rate markets.”
No sheeps back here – Australia now rides in the hold of a Capesize bulk freighter.