The Australian dollar has reacted to the news on lowering the Chinese rating by Moody's negatively. The Aussie is trading lower against the US Dollar. Currently the pair holds at 0.7470.
Thus, the Moody's rating agency has reviewed its rating in national and foreign currency for China and lowered it from AA3 to A1. The outlook for the sovereign rating has changed from "negative" to "stable". The agency's officials commented the Chinese GDP growth rate will fall to 5% within 5-year period while dept will rise to 45% of GDP by the end of the decade.
That said, Moody's noted that the Chinese economy looks "presentably" compared with other countries. It is clear that China should be compared with itself only bearing in mind its specifiс nature.
The Aussie is usually sensitive to any news coming from China. China is Australia's key trade partner and the biggest consumer of Australia's commodities.