China's yuan link to Aussie dollar 'overstated', Goldman Sachs says

Australia's Australian dollar has been closely watched by traders as they speculate about China's potential influence on its value.

The theory is that if Beijing intervenes to boost domestic growth, it could also lift the Australian dollar.

However, Goldman Sachs analyzed the relationship between the two currencies and found that their connection is more selective than commonly assumed.

The link mostly depends on Chinese commodity demand, rather than a direct response to policy moves in Beijing.