The country has been probably one of the largest beneficiaries of the economic boom in China, having grown continuously for more than two decades, however economic forecaster BIS Shrapnel expects a fall in Australian mining investment. Instead of Santa Claus rally we can notice downward trends, which started on 11 December 2014.
The rapid economic growth in Australia is caused by the fact that mining boom is over. What will happen after unprecedented 20 years of growth? First, Australia has a deficit this year. Moreover, after the years of prosperity, Australia is left with its continuously growing national debt.
The economy is running at below its potential and the most troubling evidence of this is that unemployment is rising. Analysts forecast that unemployment will be growing until the peak in June.
Only one good thing is that Australia recovered from the global financial crisis with small unemployment.
Nowadays, investing money in Australia is risky because the economy is not in a good shape. Macroeconomic data have a strong influence on investors' behavior that is why the prices are going down. What is more, the average price of raw materials is generally decreasing, for this reason the value of the Australian dollar also is falling.
Here are the charts http://www.trendsinvesting.com/motif-details/Equity,Australia/months/absolute
Trend move: -12.34% trend start: Wednesday, 2014-11-12