Re-balancing in China and the US: Who is exposed?

• The US needs to rebalance its economy from consumption to investment. China needs the opposite.
• Canada and Mexico are best placed with high exposure to US investment and low exposure to Chinese investment.
• At the other end of the spectrum are Taiwan, Korea and Australia with high exposure to Chinese investment.
• We do not recommend shorting AUD/CAD at current levels; however, we will look for entry levels to sell on rallies.

Read the full report: Market Research


Commonwealth Bank

Powered by WPeMatico

This entry was posted in Forex. Bookmark the permalink.

Comments are closed.