# Forex: China, recession worries hammer the Australian dollar

> The Australian dollar was set to end August sharply lower, on course for a 1.6% monthly loss, as aggressive central bank rate rises and slowing Chinese growth weighed on it. ANZ lowered its 2022 GDP forecast for the world's second-largest economy to 3% from 4%, citing weaker demand.

- Date: 2022-08-31 · published 2022-08-31T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/40293-forex-china-recession-worries-hammer-the-australian-dollar
- Commodities: [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md), [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

A weaker Aussie and softer Chinese growth outlook signal reduced demand for industrial commodities and a firmer dollar, which tends to pressure dollar-denominated grain and oilseed prices.

## Read by commodity

- DXY: bullish ▲
- AUDUSD: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2018-04-26 | ['That's history': Australian dollar has had a week to forget](https://feedsoft.ai/events/65755-that-s-history-australian-dollar-has-had-a-week-to-forget.md) | +0.7% | +2.1% |
| DXY | 2022-12-27 | [USD to AUD Forecast: Why The US Dollar Is Strengthening Against The Australian Dollar](https://feedsoft.ai/events/38485-usd-to-aud-forecast-why-the-us-dollar-is-strengthening-against-the-australian.md) | +0.1% | -2.5% |
| DXY | 2022-12-16 | [Global recession worries chip away at corn, soybeans – The Seam](https://feedsoft.ai/events/5521-global-recession-worries-chip-away-at-corn-soybeans-the-seam.md) | -0.3% | -2.7% |
| DXY | 2026-07-31 | [Australian Dollar holds despite weak Chinese PMIs](https://feedsoft.ai/events/18600-australian-dollar-holds-despite-weak-chinese-pmis.md) | -0.1% | -1.1% |
| DXY | 2022-09-27 | [Dollar rally, recession fears wreak havoc on commodities](https://feedsoft.ai/events/11908-dollar-rally-recession-fears-wreak-havoc-on-commodities.md) | -1.1% | -0.8% |

## Sources

- afr.com: https://www.afr.com/markets/currencies/china-recession-worries-hammer-the-australian-dollar-20220831-p5be3t

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.