One of Australia's worst ever Governments and by far the worst ever treasurer have bitten the hand that feeds them with the Mining Tax.
The AUD will be the first victim. Australia is a Mining nation and the majority of Australia-China Trade is Mining based.
The Australian dollar fell to a two-month low of $US1.0336 overnight on signs of weaker growth in China and improvement in the US economy.
The dollar recovered some of its losses today to close locally at $US1.0387, but analysts said the slide may continue, sending the dollar to as low as $US1.02 next week.
So far the dollar is already down about 1.2 per cent this week against the greenback. If it continues, the loss would make it three consecutive weeks of losses for the Australian dollar - the longest losing streak since the end of November.
Shayne Heffernan oversees the management of funds for institutions and high net worth individuals.
Shayne Heffernan holds a Ph.D. in Economics and brings with him over 25 years of trading experience in Asia and hands on experience in Venture Capital, he has been involved in several start ups that have seen market capitalization over $500m and 1 that reach a peak market cap of $15b. He has managed and overseen start ups in Mining, Shipping, Technology and Financial Services.