Australian Treasurer Chalmers: China slowdown, higher rates will put significant pressure economy

Anil Panchal FXStreet

Australian Treasurer Jim Chalmers said on Wednesday, “The slowdown in China's economy and higher interest rates at home will put significant pressure on the Australian economy, though the country should manage to avoid a recession.” The policymaker spoke to ABC Radio during early Wednesday per Reuters.

The policymaker also said that Australia had not been immune from weakness in the global economy while also citing the recent events in China as "most concerning".

"We've seen, particularly in their property sector but also in relation to their retail and relation to their exports, that the Chinese economy has been slowing quite considerably. And that's obviously important to us," said Aussie Treasurer Chalmers.

AUD/USD stays depressed

With the downbeat comments from the key Aussie policymaker ahead of Australia’s second quarter (Q2) Gross Domestic Product (GDP), the AUD/USD pair licks its wounds at the lowest level in 2023 after falling the most in five weeks, mildly offered near 0.6375 at the latest.

Also read: AUD/USD stays depressed YTD low below 0.6400 ahead of Australia GDP, US ISM Services PMI

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

EUR/USD climbs to daily highs near 1.1820

EUR/USD now picks up pace and advances to the area of daily peaks north of the 1.1800 barrier at the end of the week. The pair’s decent move higher comes against the backdrop of a generalised lack of direction in the FX galaxy and the mild offered stance in the US Dollar.

GBP/USD trims losses, retests 1.3460

After briefly challenging its key 200-day SMA near 1.3440, GBP/USD now manages to regain some balance and revisit the 1.3460 zone on Friday. Cable’s pullback comes as the selling pressure on the Greenback gathers traction, reigniting some recovery in the risk-linked space.

Gold flirts with four-week highs past $5,200

Gold extends its rebound, climbing for a third consecutive session and pushing back above the $5,200 mark per troy ounce on Friday. The move higher continues to draw support from lingering geopolitical tensions and the ongoing uncertainty surrounding US trade policy, both of which are keeping safe-haven demand firmly in play.

Bitcoin, Ethereum and Ripple consolidate with short-term cautious bullish bias

Bitcoin, Ethereum and Ripple are consolidating near key technical areas on Friday, showing mild signs of stabilization after recent volatility. BTC holds above $67,000 despite mild losses so far this week, while ETH hovers around $2,000 after a rejection near its upper consolidation boundary.

Breaking: US and Israel attack Iran, risk aversion to sweep global markets

Early Saturday, United States (US) President Donald Trump announced that the US had begun “major combat operations” in Iran, following Israel’s pre-emptive missile attacks against Tehran.

Starknet unveils strkBTC, shielded Bitcoin transactions on Ethereum Layer 2

Starknet, the Ethereum Layer 2 network developed by StarkWare, today announced strkBTC, a wrapped Bitcoin asset that introduces optional shielding while preserving full DeFi composability.