Australian DollarAustralian Property

Have Australia’s Chinese house prices topped?

David Llewellyn-Smith
Monday, 8 May 2017
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The Chinese yuan has not fallen now for six months, it’s longest period of stability since it began devaluing in late 2014. Some now reckon it has stopped falling. From Horseman Capital:

The Chinese Yuan (CNY) was fixed for many years before beginning to appreciate in 2005. Since 2014 it has been in a weakening bias, as the US dollar has been relatively strong. Part of the weakness in the CNY was due to China cutting interest rates from 2015 to help prop up growth. This greatly reduced the relative spread between interest rates between China and the US and put pressure on the currency. (Shanghai Interbank Offer Rate (“Shibor”), London Interbank Offer Rate (“Libor”)).

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About the author
David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the founding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal. He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.