S&P: Australia’s economy will move into recession by June 2020

Dhwani Mehta FXStreet

According to S&P Global Ratings, the Australian economy is seen moving into a recession by June 2020 adding that it will grow 1.2 % in 2020 before rebounding.

Key takeaways

That its ratings on Australia are not under immediate threat from the now likely technical recession.

Believe the ‘AAA’ rating on Australia can weather a temporary economic shock.

The country's strong fiscal position has provided it with some room to manoeuvre at the current rating.

We believe Australia’s economy will move into recession by June 2020 and grow 1.2 % in 2020 before rebounding.

Tolerance for further weakening at the ‘AAA’ rating level is diminishing.

Rating could come under pressure if weak economic conditions are more prolonged than we currently expect.

Stimulus package unlikely to strain Australia’s creditworthiness.

This comes after the Australian PM Morrison announced AUD 2.4 bln health package to combat coronavirus earlier today.

AUD/USD: Firmer above 0.6500

The Aussie extends the bounce above the 0.65 handle amid broad-based US dollar weakness while the AUD bulls also cheer the health package announced by Australia to fight the virus.

At the time of writing, AUD/USD trades 0.13% higher near daily highs of 0.6514.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD shifts its attention to 1.1900 and above

EUR/USD has shaken off Tuesday’s dip, pushing back beyond the 1.1800 mark amid decent gains as Wednesday’s session draws to a close. The rebound is largely driven by a modest pullback in the US Dollar, as markets digest the aftermath of President Trump’s SOTU speech and continue to monitor trade-related headlines and signals from the White House.

GBP/USD challenges multi-day highs near 1.3530

GBP/USD leaves behind the previous day’s decline and regains fresh upside traction on Wednesday, surpassing the 1.3500 barrier in a context of a modest decline in the Greenback and a generalised improved mood in the risk-linked space. Meanwhile, the US tariff narrative continues to dictate the mood among market participants after Presidet Trump’s SOTU speech failed to surprise markets.

Gold remains bid and close to $5,200

Gold buyers are returning to the fold on Wednesday, targeting the $5,200 area and possibly beyond, after Tuesday’s corrective dip from monthly highs. The rebound in the precious metal comes as the US Dollar loses traction, with Trump’s SOTU speech offering little fresh direction and AI-related nerves continuing to ease.

UK financial watchdog advances stablecoin oversight as four firms pilot issuance

The Financial Conduct Authority (FCA) in the United Kingdom (UK) is advancing toward the final stablecoin regulatory framework with a pilot program involving four companies, including Monee, Financial Technologies ReStabilise, Revolut and VVTX.

Nvidia earnings to influence AI trade and broader market sentiment

For the last three years, Nvidia has been the engine of the AI boom, and now Wall Street is watching to see whether that momentum can keep going. High-growth stocks have been struggling to maintain their bullish trend in 2026.

Cosmos Hub Price Forecast: ATOM rebounds slightly, bearish outlook remains intact

Cosmos Hub (ATOM) price rebounds, trading above $2.05 at the time of writing on Wednesday, after undergoing a sharp correction since last week. Weakening on-chain and derivatives data support a bearish outlook, while technical analysis remains unfavorable.