The impact of a deeper economic deterioration in China will be mainly felt in Australia through weaker trade and reduced risk appetite in financial markets, Australian regulators said in a quarterly statement. “A sharp slowdown in China, were it to materialize, would principally transmit to Australia through trade channels and through an increase in risk aversion in global financial markets,” the Council of Financial Regulators said Monday. China is the biggest buyer of Australian goods from iron ore to coal and food products and a windfall from recent elevated commodity prices helped Canberra report its first budget ... (full story)