Aust dollar slips on IMF report

Local currency marginally weaker as IMF downgrades China outlook.

The Australian dollar is marginally weaker after the International Monetary Fund warned of a prolonged growth slowdown in China.

At 0630 AEST, the local unit was trading at 91.79 US cents, down slightly from 91.83 cents on Tuesday.

Earlier, the currency fell below Tuesday's closing level after the IMF trimmed world economic growth expectations for 2013 to 3.1%, down from the April forecast of 3.3%.

China and other emerging economic powers now face new risks, the IMF warned, "including the possibility of a longer growth slowdown".

Risk appetite, however, did not appear to be diminished by the new predictions, with US stocks closing higher for the fourth consecutive day. The Dow Jones Industrial Average rose 0.50%, the broad-based S&P 500 added 0.72% and the tech-rich Nasdaq Composite Index lifted 0.56%.

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