Aussie Dollar Danger!

China's growth model is dead in the water.

We have been very bearish on the Australian dollar.  The reason is a simple one.  It is the belief that as China goes, so goes the Australian economy.  
The rationale is clear: the Australian mining sector is the driving force for GDP growth in Australia.  Continued prosperity in the mining sector is a direct function of demand for commodities from China.  We believe Chinese growth is falling fast, much faster than official statistics indicate.  If this is true, the Australian economy has peaked in this cycle and soon the Australian dollar will feel the pain of this deceleration in growth ...  

Currency Currents 24 August 2012