Australia has lost its Auto production, doesnt manufacture much else.
Its balance of trade has been mostly on the minerals exports, but obviously some other areas, tourism, bananas.
Lower balance of trade = lower demand for AUD.
China on the other hand is the worlds manufacturing center, so high demand for that currency.
Currencies move on demand for exchange.
If i need to buy a chevrolle in the USA and import it to AU, i need to pay for it in USD. I have to buy USD, and sell my AUD for it. Simple.
The AU export will take time to find its neiche again.
Bottom line is that even if AU was stagnant, china is rising into a first world currency.
Which means the chart will just get better.
(our eps is growing in AU terms without any more stores !!)
