• 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
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