Out-Of-Favor Aussie Acting Like an Emerging Market Currency

The video discusses the perception of the Australian dollar as an emerging market currency, despite it not being one. The currency's decline is attributed to factors such as China's economic influence, US-China trade tensions, and domestic economic issues in Australia. The video also highlights the role of liquidity and global funding costs, as well as interest rate changes by major Australian banks, in affecting the Aussie dollar. The ongoing US-China trade spat is a significant factor impacting Australia's economy, given China's substantial role as a trading partner.

In what ways are global funding costs affecting the Australian banking sector?

What are the implications of the US-China trade tensions on the Australian dollar?