US ratings agency out with a note on Australia 23 Aug

  • credit profile reflects its very high economic, institutional and fiscal strength but country faces latent risks
  • exposed to two main types of shocks: high snd rising household debt and economy's long standing dependence on external financing
  • govt general debt burden will rise to 42% of GDP in FY 2018 (year ending June 2018) vs 36.1 in FY 2015
  • high, rising hosehold debt exposes it to potential downturn in housing market that could significantly weigh on GDP
  • dependence on external financing exposes Australia to a shift in foreign investors' assessment of attractiveness of Australian assets

Moody's rightly expressing caution/concern over the old housing/household debt issues and dependence on external financing.

Meanwhile AUDUSD 0.7893 stuck in a 80-00 range for the moment.

More demand behind that into 0.7860. Offers/res 10-20 then larger into 0.7950.

AUDUSD