Since the first skirmish between Australia and China as the former called for an investigation on the origins of Covid-19 last month, markets have feared the diplomatic fall-out would trigger economic retaliation. Recent news flow suggests such fears, and AUD’s shield to trade tensions is creaking. After imposing tariffs on Australian barley and beef in addition to an import ban, reports that China is targeting Australian coal have intensified. Despite no official confirmation from Chinese authorities, speculation and media reports about a possible import ban on coal has been enough to trigger a drop in AUD. Unlike ... (full story)