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