Some of the investors are likely looking Australian bond as the attractive product in the market. (Australian bonds yields touch recordlowin investor flight to safety)
Australian dollar has declined against some major currencies, such as USD or GBP for last 2 - 3 years, and the trend reversal might be expected.
Source: Government of Western Australia Department of Mines and Petroleum |
Australian mining sector contribute for around 20% of GDP, and the top importer from the sector is China. When Chinese economy slow down and their demand for commodities is shrink, Australian economy will decline due to the high dependence on Chinese economy.
Despite those risk factors, uncertainty in global economy, particularly European economy would be riskier for the investors.
Ref. Government of Western Australia Department of Mines and Petroleum
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