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Australia’s most populated state is New South Wales and its most populated city, Sydney, is situated there.
The Treasurer, Daniel Mookhey, has warned that the state may face a downgrade in its rating due to analysis conducted by his department. Within two weeks, the state will have to spend over 5% of its income on debt repayment, which is a warning sign for rating agencies. The NSW Treasury has indicated that the state’s debt level is already 30% higher than other AAA-rated states.
This does not indicate a positive impact on the AUD.
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