Moody’s cuts China's credit outlook to negative on growing debt risks

The credit rating agency Moody's cut its outlook on China’s sovereign credit rating to negative on Tuesday, citing the increasing risks to growth and a property sector crisis in the world’s second-largest economy, per Reuters. 

Moody's downgraded China's A1 debt rating to "negative" from "stable" less than a month after lowering the US' remaining triple-A grade from a credit rating agency. This development sends a warning to lenders that the likelihood of a default has grown over the last year.

Market reaction

At the time of press, the AUD/USD pair was up 0.01% on the day at 0.6554.
 

AUD/USD loses ground near 0.6550 ahead of the Australian GDP data

The AUD/USD pair extends its downside around the mid-0.6500s during the early Asian session on Wednesday.
了解更多 Previous

AUD/JPY Price Analysis: Plunges after RBA’s dovish hold, technicals hint downside risks remain

The AUD/JPY began Wednesday’s Asian session with a negative tone after registering losses of more than 1% on Tuesday.
了解更多 Next