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The Aussie Is Increasingly Tied to China Risks, BNY Mellon Says

Andreea Papuc
The Aussie Is Increasingly Tied to China Risks, BNY Mellon Says

The link between Australia’s dollar and China’s stock market is now the tightest in more than a decade, illustrating the risks for the exchange rate as China decides how to respond to U.S. trade threats, according to Bank of New York Mellon Corp. The Aussie became increasingly correlated with the markets of Australia’s biggest trading partner in 2015, when China hard-landing fears contributed to a collapse in that country’s stocks and its officials devalued the yuan. The correlation has been on the rise again since April, when U.S.-China trade tensions deteriorated, BNY Mellon analysis shows.