Moody's says credit conditions in Asia will turn negative in 2020

Ross J Burland FXStreet

Moody's says with coronavirus aside, structural changes add to Asia's credit challenges.

Key notes

Moody's says credit conditions in Asia will turn negative in 2020, in tandem with a slowdown in growth momentum, continued trade policy uncertainty.
Moody's says slowdown in Asian growth will constrain policy choices and limit the region's ability to respond to negative shocks.
Moody's says at the sovereign level, weaker growth prospects will hinder revenue generation and shock absorption capacity in Asia.

Market implications

The coronavirus is still a threat, yet there is a more positive outlook in financial and commodity markets recently – More on that here: Coronavirus peaking? How will it impact the global economies and FX?

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

AUD/USD stays defensive below 0.7150 after Chinese data

AUD/USD remains on the back foot below 0.7150 in the Asian session on Tuesday, close to an over three-week low touched the previous day. US bond yields hold near multi-year highs ahead of the FOMC meeting and oil-driven inflation risks, supporting the US Dollar and weighing on the currency pair. Mixed Chinese activity data for August also fail to inspire the Aussie.

USD/JPY extends gains toward 155.00 amid USD resurgence

USD/JPY keeps pushing higher toward 155.00 early Tuesday, looking for more upside, as traders await the FOMC and BoJ meetings this week. Meanwhile, Fed rate-hike bets and oil-driven inflation risks keep US bond yields near multi-year highs, supporting the US Dollar and the pair. That said, a more hawkish repricing of the BoJ normalization path might continue to underpin the Japanese Yen and could limit USD/JPY's upside. .

$4,275: Gold skating on thin ice as eyes remain on Mideast conflict, Fed

Gold is briefly regaining $4,300 early Tuesday, looking to build on a tepid recovery from six-week troughs near $4,250. Traders are monitoring the widening conflict in the Middle East ahead of the two-day US Federal Reserve monetary policy meeting later in the day.

Bitcoin remains volatile amid CLARITY Act vote – Zcash, Stellar rally

Bitcoin holds steady around $78,000 on Tuesday, sustaining its roughly 2% recovery from the previous day. Broader cryptocurrency market volatility remains elevated ahead of the scheduled CLARITY Act cloture vote on Tuesday. Zcash and Stellar retain bullish momentum, emerging as the top performers over the last 24 hours.

Hard assets are entering their next explosive phase – Are you positioned?

It’s official: Commodities and Hard Assets have become the best-performing asset class of 2026. In a year defined by persistent inflation, geopolitical conflict, rising sovereign debt and intensifying supply disruption, capital is rotating aggressively into the one area governments cannot print and central banks cannot manufacture: scarce physical assets.

Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight

The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.