Fitch Ratings-Sydney-08 March 2020: Australian banks are likely to face further challenges to their earnings in 2020 due to cash rate cuts in response to an expected slowdown in global growth stemming from the COVID-19 outbreak, with risks intensifying if the outbreak is not effectively contained, Fitch Ratings says. Key notes New Zealand banks, which are dominated by the subsidiaries of major Australian banks, would feel similar effects if the Reserve Bank of New Zealand (RBNZ) opted to cut rates at its next meeting. The outbreak would increase the risk of a broad deterioration in asset quality for the banks, reflecting the slowing global economic growth, driven by China. China is the largest trading partner for both countries and Australia is New Zealand’s second-largest trading partner. Full report FX implications In typical risk-off fashion, commodity-FX has taken a blow at the start of the week, with AUD/USD down -0.63% and NZD/USD -0.59% at the time of writing. News pertaining to the spread of the virus and will continue to cast a dark cloud over demand for commodities and global trade, directly impacting correlated currencies, such as AUD, NZD and CAD. FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next NZD/USD: Registers six-day winning streak above 0.6300, coronavirus is the key FX Street 2 years Fitch Ratings-Sydney-08 March 2020: Australian banks are likely to face further challenges to their earnings in 2020 due to cash rate cuts in response to an expected slowdown in global growth stemming from the COVID-19 outbreak, with risks intensifying if the outbreak is not effectively contained, Fitch Ratings says. Key notes New Zealand banks, which are dominated by the subsidiaries of major Australian banks, would feel similar effects if the Reserve Bank of New Zealand (RBNZ) opted to cut rates at its next meeting. The outbreak would increase the risk of a broad deterioration in asset quality for the banks,… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
