China may import less due to its property markets’ new regulation, short AUD/USD?
Chinese regulator will start a special campaign against property market speculations, unlicensed real estate agencies, developers’ violations and false advertising.
- 30 cities including Beijing and Shanghai will be involved in the 6-month operation starting from early July.
- Regulators are cracking down on violations including manipulation of home prices, rent, property hoarding and non-compliant loans that are used to fund down payments.
- Shanghai stocks dropped more than 1% today after the news was released.
- Furthermore, China’s expansion seems to have slowed down this month, underscoring the fragility as the next wave of tariffs in the trade dispute with the US approaches.
- AUD/USD may fall below 0.73 in coming weeks.
Fullerton Markets Research Team
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