Fitch: Australia's post-crisis debt trajectory key to rating outlook

The US-based Fitch Ratings, in its latest report, highlighted risks to Australia’s sovereign credit rating.

Key findings

“Australia's post-crisis debt trajectory key to rating outlook.”

“Australia has space to accommodate near term deterioration fiscal metrics associated with its efforts to counter coronavirus and its effects.”

“Considerably higher govt debt means Australia’s rating developments will depend heavily on plans to manage public finances over medium term.”

Market reaction

The sentiment around the aussie dollar is purely driven by the risk-off flows, as China retaliated over the Houston closure. Therefore, the above report has little to no impact on the AUD.

The spot was last seen trading at 0.7080, losing 0.27% on a daily basis.