The Australian dollar is under pressure today after a report from the International monetary fund showed that they expect a slowdown in global growth this year adding to the woes of the commodity based currency.
The IMF noted the expected weakness in the Eurozone, China, and Japan will be a drag on the world economy and limit growth to 3.5% down from their previous forecast of 3.8%.
Westpac senior market strategist Imre Speizer said the currency received a double hit in the last couple of days starting with poor data out of China yesterday.
“Sentiment soured slightly amid a global growth downgrade from the IMF and lower oil prices,” he said.
“The shift in global sentiment overnight has given the Australian dollar a slightly negative hue on the day.”
As the Australian dollar continues to fall, more and more Australians are choosing to stay at home rather than travel overseas according to data from St George Bank.
The report shows that up to 45% of Australians are putting off International travel because of the falling Aussie dollar.
The TRA’s assistant general manager Tim Quinn said during the last year there has been a significant reduction in Aussies travelling abroad.
“There has been a real sudden decline in Australians’ propensity to travel overseas,’’ he said.
“Following significant year-on-year increases in outbound travel commencing in the mid-2000s, the rate of growth in outbound trips is now showing signs of softening compared to when the Aussie dollar was around parity with the US dollar”.
“It’s domestic tourism which has picked up, driven by solid growth in the visiting friends and relatives segment, a segment worth $12.4 billion.”
The IMF noted the expected weakness in the Eurozone, China, and Japan will be a drag on the world economy and limit growth to 3.5% down from their previous forecast of 3.8%.
Westpac senior market strategist Imre Speizer said the currency received a double hit in the last couple of days starting with poor data out of China yesterday.
“Sentiment soured slightly amid a global growth downgrade from the IMF and lower oil prices,” he said.
“The shift in global sentiment overnight has given the Australian dollar a slightly negative hue on the day.”
As the Australian dollar continues to fall, more and more Australians are choosing to stay at home rather than travel overseas according to data from St George Bank.
The report shows that up to 45% of Australians are putting off International travel because of the falling Aussie dollar.
The TRA’s assistant general manager Tim Quinn said during the last year there has been a significant reduction in Aussies travelling abroad.
“There has been a real sudden decline in Australians’ propensity to travel overseas,’’ he said.
“Following significant year-on-year increases in outbound travel commencing in the mid-2000s, the rate of growth in outbound trips is now showing signs of softening compared to when the Aussie dollar was around parity with the US dollar”.
“It’s domestic tourism which has picked up, driven by solid growth in the visiting friends and relatives segment, a segment worth $12.4 billion.”
Recommended Content
Editors’ Picks
Australian Dollar maintains ground amid subdued US Dollar, US Nonfarm Payrolls awaited
The Australian Dollar rises on hawkish sentiment surrounding the RBA prolonging higher interest rates. Australia’s central bank is expected to maintain its current rate at 4.35% until the end of September. US Nonfarm Payrolls is expected to print a reading of 243K for April, compared to 303K prior.
EUR/USD: Optimism prevailed, hurting US Dollar demand
The EUR/USD pair advanced for a third consecutive week, accumulating a measly 160 pips in that period. The pair trades around 1.0760 ahead of the close after tumultuous headlines failed to trigger a clear directional path.
Gold bears take action on mixed signals from US economy
Gold price fell more than 2% for the second consecutive week, erased a small portion of its losses but finally came under renewed bearish pressure. The near-term technical outlook points to a loss of bullish momentum as the market focus shifts to Fedspeak.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.