Australian Dollar Slides To Two-Year Low On Recession Risk
The Australian dollar tumbled to the lowest level since the early days of the pandemic as risk aversion swept across markets.
(Bloomberg) -- The Australian dollar tumbled to the lowest level since the early days of the Covid pandemic as risk aversion swept across markets.
The Aussie declined 0.4% against the US dollar to 0.6674, the lowest level since 2020.
Investors piled into the safe-haven US dollar and sold risky assets after the World Bank reported that the global economy may face a recession next year. Policy makers around the world are rolling back monetary and fiscal support at a degree of synchronization not seen in half a century, according to the study released in Washington on Thursday.
Part of the move has also been driven by concern over economic growth in China, Australia’s largest trading partner. The consensus in a Bloomberg survey is for the economy to expand 3.5% this year, which would be the second-weakest annual reading in more than four decades. Forecasters at Morgan Stanley and Barclays Plc are among those predicting even slower growth as risks mount into year-end.
China GDP Growth Forecasts Keep Sinking as Risks Multiply
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