Waning capital flows linked to mergers and acquisition deals and bond buying are stripping key support from the Australian dollar, according to strategists at Credit Suisse. Analysis by the investment bank shows that between 2008 and 2011, Australia recorded the third-largest net cumulative M&A-announcement flow after the U.S. and U.K., in absolute terms. Normalizing those flows by national output shows that Australia topped the M&A tables during this period–largely driven by deals in the mining and resources sector, the bulwark of Australia’s economy. But deal volumes are now in decline, meaning the Aussie dollar ... (full story)