img AUS
img NZ
img CDN
img US
Call us now: 1800 874 942
imgOnline Dealing Login

IMF revises down global growth forecast

Published October 10, 2018

Author: Dennis Li

With less significant economic data released so far this week, we saw the AUD have little movement against its major peers overnight. The AUDUSD edged up 0.37% touching 0.7100 as USD dipped due to a fall in US bond yields. The AUDGBP had a quiet day on Tuesday after a poor start to October, down over 3% so far as Brexit comes closer. Eyes on the UK GDP data release tonight.

  • Economic policymakers are gathering in Indonesia for this weekend’s annual meetings of International Monetary Fund (IMF) and World Bank with focus on risk to the global economy posed by rising protectionism.
  • The IMF on Tuesday cut its global economic growth forecasts for 2018 and 2019 as the trade tensions between the US and its trading partners have started to hurt economic activities around the globe.
  • A budget standoff between Italy and the EU is driving the Italian bond yields to new highs as two credit agencies are deciding whether to cut their rating to within one notch of ‘junk’.
  • US President Trump on Tuesday repeated his threat to impose tariffs on $267 bln worth of additional Chinese imports if China retaliates for the recent levies.
  • IMF Chief economist Maurice Obstfeld said on Tuesday that he was not concerned about the Chinese government’s ability to defend its currency despite the recent depreciation of the yuan.
  • China has held back on the imports of liquefied petroleum gas (LPG) from the US, turning to the Middle East for extra supplies amid the two countries trade dispute.