I agree fluffyn, The market expected this drop and has factored-in prices accordingly. It is interesting to note that iron ore has just gone up in price so at least that market expected worse figures and less demand.
The relevance to Australia's economy is our exports of resources to China of which iron ore and coal are the chief commodities.
We also export these commodities to Japan who's economy is improving due to QE. IMO, Japan's recent lift in iron ore demand has lifted iron ore's price.
While we may be 40% dependant on China for our major resource exports, there's 60% going to other markets such as Japan and Korea ( China's competitors)
