A happy Chinese New Year for Australia

China is signalling strong policy settings for 2013. Combined with a remarkable iron ore price turnaround, this will boost Canberra's budget and could mean Australia is nearing the end of the easing cycle.

The prospects for a pick-up in China’s economy are getting better by the week, with more signs that 2013 could be a strong year. It is good news for the Australian economy, which has slowed in the past year in the wake of a sharp fall in the terms of trade and faltering national income growth.

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