ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print

China-reliant Australian dollar at trade war's mercy

Investors flee as Chinese slowdown threatens to hurt resource exports

An excavator at an Australian iron ore mine. Chinese imports of such natural resources fueled Australia's growth, but the trade war threatens to squeeze the Asian economy.   © Reuters

SYDNEY -- Australia's currency sank to a decade-low against the dollar as its reliance on commodities exports to China turns into an Achilles' heel, with the ongoing trade war putting pressure on the world's second-largest economy.

The Australian dollar, which had softened 10% in 2018, began to crumble further Thursday after Apple downgraded its earnings forecast due to poor Chinese sales. It weakened past 68 cents at one point. It has since recovered to 71 cents per Australian dollar Monday, thanks to potential progress in trade talks between Washington and Beijing.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Discover the all new Nikkei Asia app

  • Take your reading anywhere with offline reading functions
  • Never miss a story with breaking news alerts
  • Customize your reading experience

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more