The Australian dollar has remained surprisingly stable this week amid volatile headlines from China and declining commodity prices but analysts are divided over whether this stability will last.
Australian assets are particularly vulnerable to economic swings in China– its largest trading partner – but fears over the strain on Beijing's financial system following two reports of corporate debt defaults and a tumbling yuan have yet to take their toll on the Australian dollar.
Furthermore, copper prices were on track to close out the week not far from three-and-a-half year lows. Exports of the metal bring in about $6 billion a year for Australia, making it a key commodity export with China representing one of the metal's top consumers.
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The Aussie has managed to trade above 90 U.S. cents for a seventh straight session, rising to a three-month peak of $0.9137 on Wednesday.