The Australian Stock Exchange has recently suffered a major blow as the ASX200 may fall on increasing instances of escalating US-China tension. The Chinese government is now making an effort to reduce the number of Australian shares traded in China and is attempting to increase the price of Australian shares.
Australian share market traders are not the only ones in the firing line as there are concerns raised over the effect of this possible price drop on the rest of the ASX200. If the Chinese government continues to attempt to reduce the number of Australian shares traded in China, the Australian dollar may become weaker and this will not be good for the Australian economy. If there is a strong Australian dollar, it will make imports from Australia more expensive, and this will be a big negative for the Australian economy.
For the US economy as a whole, the weakening of the Australian dollar may have a negative effect on the overall US economy. If China is successful in reducing the number of Australian shares traded in China, then the US dollar may weaken. As a result, there will be more US dollars on the Australian dollar and this will hurt US exporters. The US economy is being affected by the US dollar in a negative way, and the US government is trying to take measures to prevent this negative impact from being a bigger problem.
The US economy is not the only one that could be affected by the fall in the ASX200. There are also concerns that the drop in the Australian dollar will be a negative impact for the rest of the world economy. If the US economy is suffering from the negative impact of the Australian dollar, then this may lead to a stronger US dollar that could lead to economic problems in other countries around the world.
The US Federal Reserve has also been worried about the effects that this possible fall in the Australian dollar may have on the US economy. If the US dollar weakens against other major currencies, then this may affect the US trade deficit and this may also have an effect on the US economy. The US economy is already suffering from the effects of falling global trade and a stronger US dollar could lead to a negative impact on the US economy.
The Australian dollar has fallen as a result of increased US-China trade over the last year and this has caused the Australian dollar to fall. This may lead to less Australian trade flows in China and less Australian trade flows out of China. This is not good news for the Australian economy.
As the Australian dollar falls against other currencies, the Australian dollar may become more expensive for Australian exporters, causing them to have to cut back on imports. This is a negative effect for the Australian economy. However, if there are a weaker Australian dollar and less Australian exports going into China, this will cause Australian exporters to export less in China. This will have a negative impact on the Australian economy as well.
If the Australian dollar weakens against the US dollar and if there is a large number of importers buying Australian goods and services, then this will cause the Australian dollar to fall and it could cause the Australian dollar to fall on the Australian dollar, causing a negative impact on the Australian economy. In many ways, the Australian dollar is already having a negative impact on the Australian economy because of the increased US-China trade. If there are a stronger Australian dollar and less trade going into China, then the Australian dollar will be weak.