As we know, the China's slowdown affects all the Asian markets, so much that it still currently bound and limit the raise of any Asian market, this is at least what I can see. However, I feel like Australia is isolated, it is even geographically known in the "Oceania", meanwhile, it feels like every down and up of the Asian markets is represented to Australia. Why Australia feels so dependent to the Asian markets meanwhile they are far from it. It is a pretty isolated continent and the continent could run easily on itself, much like we talk about United States markets and not the North American ones.
We built the greatest nation on earth over a couple hundred years - Aus and others could only dream to be like us. But we seem to be declining in recent years.
The Australian coal and copper miners depend primarily on Chinese customers, but with the Chinese and SE Asia economic slowdown exports are not so wonderful. I would have thought the Australian coal exports to Japan wouli have popped after the shutdown of nuclear plants following the earthquake and tsunamis, but that never seemed to happen.
I have to agree with Baudwalk on this one. The reason is largely that Australia is commodity based economy. With the falling demand for commodities and the resultant falling prices, an economy such as Australia is largely expected to suffer in this kind of global economic landscape. Being a commodity based economy is both a blessing and a curse in its own right. Australia might be slightly better off than other commodity based markets. Most of the other commodity based economies are largely emerging market economies, so these countries are dealing with both the falling commodity prices and the flight to towards safety.
I wouldn't tell I'm an expert of Australia, so I really discovered because of the posts here that Australia is exporting copper and mining resources to Southeastern Asia. But if you consider that, yes, commodity isn't really looking good and are almost always the first thing to slow down with the industry's manufacturing because all these resources is only useful when manufactured or used somehow. That's the basic idea. It's a blessing because it picks up as quickly as it falls. As soon as production backs up, your income gets higher again suddenly, even if the price isn't left to your decision, and that's not the case of products unique to a country where the companies can more freely define the price of selling. After all, the Glenncore problem shows what happens to commodities.