China is facing an increasingly hard landing
14 Aug 2012: Monthly Emerging Asia Report with Peter Redward (and Bernard Hickey from Interest.co.nz)
China's annual GDP growth is masking a steeper slowdown, according to Peter Redward. Liquidity conditions are tightening while private sector consumption numbers are displaying rising pressure: activity (electricity, steel and cement) is weakening, inventories (coal) are accumulating and commodity prices (coal and iron ore) are falling. Given that 60% of Australia’s total merchandise trade is made up of commodities exports, its balance of payments, and therefore, the AUD, is particularly vulnerable to weakness in China's industrial sector.