Moody’s says it has uncovered another potential $540 billion of local government debt and the overall outlook for China’s banking system may be downgraded in the absence of a plan to deal with the issue of local government debt. AUD/USD is trading near session lows at 1.0685 as this, the rate rumours, and the RBA all weigh. Next chart support is at 1.0670 with first Fibo support at 1.0635 (full story)