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Fitch Ratings still expects US growth, but downgrades sectors on deterioration concerns

The Fitch Ratings Agency downgraded key US industry sectors to "deteriorating" on Monday, citing still-unclear policy guidance impacting US credit conditions. Even after months of turbulence, the Trump administration appears no closer to settling into a steady governance structure, specifically when it comes to trade and tariffs, two key aspects that can have significant impacts on US consumers in particular.

Key highlights

  • Policy risks cloud US credit outlook.
  • 25% of US sector outlooks have been downgraded to 'deteriorating' in 2025.
  • Fitch cites increasing uncertainty, slowing growth, and higher-for-longer interest rate expectations.
  • Recession risk has declined thanks to easing US-China trade tensions, but over business and consumer confidence has weakened.
  • US Gross Domestic Product (GDP) growth forecast increased to 1.5% from 1.2%, but momentum is expected to continue slowing through the year.

AUD/USD edges higher as EU-US trade tensions, Fed independence and RBA Minutes come into focus

The Australian Dollar (AUD) is extending its gains against the US Dollar (USD) on Monday as EU-US trade tensions escalate and concerns over the independence of the Federal Reserve (Fed) rise.
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South Korea Producer Price Index Growth (YoY) up to 0.5% in June from previous 0.3%

South Korea Producer Price Index Growth (YoY) up to 0.5% in June from previous 0.3%
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