AUD under pressure after Chinese trade data; if confirmed then Australian interest rates will fall fast

Imports into China crumbled in January with iron ore one of the big casualities. The RBA were quite specific this morning in their quarterly bulletin, that many of their forecasts were predicated on continued strong commodity markets. If this slowdown in Chinese demand is confirmed over the next few months, then the RBA will be cutting rates by a lot more than 25bps.