AUD bearish: Moody's downgrades Australian states' outlook to 'negative'
The Australian Financial Review (AFR) reports the latest comments from Moody's Senior Credit Officer John Manning after the global rating agency downgraded the Australian states’ outlook from ‘stable’ to ‘negative’.
Key Quotes:
Lower goods and services tax collection and higher debt will dampen revenues and the ability to keep their economies growing.
Lower GST revenues will make it harder for state governments to keep investing in the economy at a time when government investment has been driving economic growth.
Public spending on infrastructure is "underpinning economic activity".
The rating downgrade news is seen weighing negatively on the Aussie dollar, keeping AUD/USD capped below 0.6800 despite the latest trade-positive comments by the Chinese Vice-Premier Liu He.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
