US ratings agency Moody's out with latest report 17 May
- increasing household leverage and low wage growth are increasing Australia's sensitivity to external shocks
- expects profits growth to moderate, as well as the potential for rising credit costs and slower credit growth
- Australian budget in May includes a number of initiatives that if implemented will place incremental pressure on banks profit growth
- major banks well positioned to meet net stable funding ratio set by Australian prudential regulation authority coming into effect on 1 Jan
Cautious tones from Moody's
AUDUSD 0.7417 in a 0.7410-30 range for the moment.
