How it Works: China and the Australian and New Zealand dollars

 To be accurate, Chinese data is actually of more importance to Australia than it is to New Zealand. As Natalie Denne at ANZ Research points out:  

"For New Zealand, whether China grows at 7 or 8 percent in any given year is neither here nor there, really – the big picture is the ongoing urbanisation of the population and the Westernisation of diets as the middle class grows.

"And in fact, consumption is holding up pretty well, rising to 12.9 percent growth y/y in May, up 0.1 percent on the month prior.

"For Australia, on the other hand, China’s investment cycle is key for their mineral exports, and the slowing in momentum has been a key driver of the 30 percent fall seen in iron ore spot prices since February."