Aussie market started positive and lost steam with RBA minutes and then it was gutted by post lunch selloff by global investors due to substantial AUD devaluation worries coming from China Yuan devaluation. Shanghai index is down over 6% today and there seems to be worry about overall growth and yuan devaluation. We do expect Yuan devaluation to continue and reach over 10% in the next few months as US Fed moves up the interest rates. This will remain negative for commodity countries and their currency. Regular readers would know that we have been saying this move was inevitable for the past few weeks and we remain of the view that there is more to come. China has taken the next step in the “Currency Wars” and they will have to make many more before the current cycle is over. The big risk for Australia is that a substantial devaluation to Yuan will drive down AUDUSD towards 60 cents. <a href="" target="_blank" data-event-type="click" data-event="link_click">(VIEW LINK)</a>