The abrupt turnaround in the AUD on Thursday may be indicative of a more erratic FX market this year. But it may also reflect two big risks that continue to lurk in the background – increasing financial risk in China and financial stress emanating from the apartment sector in Australia. The Australian employment data were also significantly weaker, fanning the concerns over under-employment expressed by the RBA in recent statements. Commodity price indicators have been quite supportive for the AUD recently, but apartment sector financial stresses may now be on the footstep of the RBA before the economy has had time ... (full story)