S&P Global Ratings keeps Australia’s AAA/A-1+rating unchanged with stable outlook

Anil Panchal FXStreet

Early Monday morning in Europe, S&P Global Ratings reaffirmed Australia’s AAA/A-1+ rating while keeping the outlook stable.

The underlying reason for the global rating agency’s latest inaction could be linked to strong Aussie inflation, as well as improvement in ties with China. However, floods in the pacific nation and the Reserve Bank of Australia’s (RBA) mixed tone seemed to have probed the rating optimists.

Key comments from S&P

Australia's economy will likely avoid recession and expand over the next three years.

We forecast the general government deficit will be less than 2% of GDP between 2023 and 2026.

AUD/USD remains depressed

Following the news, AUD/USD fades bounce off intraday low while printing a two-day downtrend near 0.7090. The Aussie pair’s weakness appears taking clues from the market’s cautious mood ahead of this week’s bumper events including the Federal Reserve (Fed) meeting and the US Nonfarm Payrolls (NFP).

Also read: AUD/USD Price Analysis: Refreshes day’s low below 0.7100 amid risk-off mood

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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