China may import less due to its property markets’ new regulation, short AUD/USD?

Chinese regulator will start a special campaign against property market speculations, unlicensed real estate agencies, developers’ violations and false advertising.

•  30 cities including Beijing and Shanghai will be involved in the 6-month operation starting from early July.
•  Regulators are cracking down on violations including manipulation of home prices, rent, property hoarding and non-compliant loans that are used to fund down payments.
•  Shanghai stocks dropped more than 1% today after the news was released.
•  Furthermore, China’s expansion seems to have slowed down this month, underscoring the fragility as the next wave of tariffs in the trade dispute with the US approaches.
•  AUD/USD may fall below 0.73 in coming weeks.