Aussie Dollar And China’s Power Output

Michael McDonough once again points to something interesting. The correlation between Aussie Dollar and China electricity consumption is quite high. Surprising at first glance, but should not be too unpredictable due to the close link between Australian economy and China.

The chart below shows AUDUSD exchange rate yoy (monthly) with China power output yoy (monthly). The correlation has increased in the past 5 years or so.

Source: FRED, National Bureau of Statistics

Of course, power output and consumption could be a good indicator of China’s economic activity (perhaps even better).

Source: National Bureau of Statistics

For more news and analysis, visit Also sprach Analyst. Follow us on Twitter and Facebook.

Get our daily email update FOR FREE!

About Zarathustra

Zarathustra: Founder and Managing Editor of Also sprach Analyst. Once an analyst, now an investor and entrepreneur. Based in Hong Kong, but Londoner at heart.