empty
 
 

2018.09.2102:53:00UTC+00Australian Dollar Climbs After S&P Rating Upgrade

The Australian dollar strengthened against its most major counterparts in the Asian session on Friday, after S&P Global Ratings raised Australia's sovereign rating outlook as it expects the federal budget balance to return to surplus by early 2020s.

The credit ratings of the nation was affirmed at 'AAA' and the outlook was revised up to 'stable' from 'negative'.

"We expect steady government revenue growth supported by the strong labor market and relatively robust commodity prices, to be accompanied by expenditure restraint," S&P said.

The agency expects property prices to continue their orderly unwind, and that this slowdown would not weigh heavily on consumer spending and the financial system's asset quality.

Asian stock markets were higher, following the record highs overnight on Wall Street as worries about U.S.-China trade tensions eased. Upbeat economic data also generated some positive sentiment, with a report from the Labor Department showing initial jobless claims unexpectedly dipped to their lowest level in nearly fifty years in the week ended September 15.

The aussie climbed to more than 3-week high of 0.7297 against the greenback, compared to 0.7291 hit late New York Thursday. On the upside, 0.75 is likely seen as the next resistance level for the aussie.

The aussie firmed to a 2-day high of 0.9419 against the loonie, from a low of 0.9396 hit at 9:45 pm ET. The aussie is seen finding resistance around the 0.95 level.

The aussie appreciated to 82.29 against the yen, its highest since August 9. The next possible resistance for the aussie is seen around the 84.00 level.

The aussie held steady against the euro, after recovering to 1.6144, from a 3-day low of 1.6176 seen at 9:25 pm ET. Next key resistance for the aussie is seen around the 1.59 region.

On the flip side, the aussie dropped to a 3-day low of 1.0891 versus the kiwi at 7:15 pm ET and held steady thereafter. At Thursday's close, the pair was worth 1.0905.

Looking ahead, PMIs from major European economies and U.K. public sector finance data for August are due in the European session.

In the New York session, Canada retail sales for July and consumer inflation for August, as well as Markit's U.S. manufacturing PMI for September are set for release.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS


Can't speak right now?
Ask your question in the chat.
Widget callback