Why US has major Influence on Australian Economy and Financial Markets ? What are the reasons?

Question

Why US has major Influence on Australian Economy and Financial Markets ? What are the reasons?

Answer 1

1. Size.  The US economy is the largest in the world, so it's the elephant in the room.  It affects _everybody_, not just Australia in specific.

2. Culture.  The US, the UK, and Australia are all Anglo-Saxon countries, and share a common economic culture.  It's has fewer regulations, lower taxes, less of a safety net, and is more "cut-throat" compared to European tradition.  With English as a common language and a common corporate culture, there are ties.

3. Specific goods.  Australia is a major commodities exporter, and America is a major commodities importer.  If US demand fell, prices would fall, hurting Australia.