In its latest report published on Tuesday, the International Monetary Fund (IMF) upgraded its gross domestic product (GDP) growth forecasts for China to 5.4% in 2023 and 4.6% in 2024.

This came in contrast with October’s outlook when the IMF revised down 2023 and 2024 China’s growth forecasts for China to 5.0% and 4.2%, respectively.

Market reaction

The upward revision to the Chinese growth forecasts fails to lift the sentiment around the Australian Dollar, as the AUD/USD pair remains heavily sold-off into the Reserve Bank of Australia’s (RBA) surprisingly dovish language in the policy statement. The pair is down 1.02% on the day, currently trading at 0.6415.