The Australian stock market has been hit hard by a slowdown in China and a global slowdown in Chinese growth, and its recent moves have not been welcomed by investors.
The Australian dollar is trading at around 70 US cents, compared with around 70-80 US cents on Tuesday, down from around 80 US cents a day earlier.
A drop in the Australian dollar has also had a knock on effect on the Australian economy.
A US-based report released on Tuesday by the Federal Reserve and the International Monetary Fund found that Australia’s exports of goods and services were expected to be about 4 per cent weaker than in 2015, and that the country’s gross domestic product (GDP) growth was expected to drop to about 2 per cent from about 2.5 per cent.
But it has since been revised downwards, to just 0.5 percentage points.
“The Australian economy is still facing the potential for slowing global growth and an expansionary global environment,” said the report, published by the International Finance Corporation (IFC).
“But there is evidence of positive changes in economic growth and the economy is showing signs of recovery in recent quarters.”