Australia is a democratic federal state within the Commonwealth of Nations, located in the Oceania. It is the 20th largest economy in the world (by GDP PPP) and is a major exporter of natural resources – specifically, iron ore, natural gas (in the form of LNG), coal, copper and gold. Booming commodity exports to China have made that country Australia’s largest trade partner since 2009. Overall, around 53% of Australia’s merchandise exports are directed to just three countries (China, Japan and South Korea). The central bank, Reserve Bank of Australia (RBA), pursues an inflation-targeting approach to monetary policy and maintains a free floating exchange rate regime. Australian dollar is closely correlated with the prices for key export commodities. The services sector is the largest part of the Australian economy, accounting for about 70% of GDP and 75% of jobs. The reliance on commodity exports into China and high household debt are usually named among key weaknesses of the Australian economy.