2020.04.0808:43:00UTC+00Australian Dollar Weakens Amid Rating Downgrade, Coronavirus Fears

The Australian dollar declined against its major counterparts on Wednesday, as S&P slashed Australia's rating outlook To negative and on renewed worries about the rising death toll across the globe due to the coronavirus pandemic.

The rating agency revised the outlook on Australia's rating to negative from stable as coronavirus, or COVID-19, outbreak weakened its fiscal outlook.

The negative outlook reflected a substantial deterioration of Australia's fiscal headroom at the 'AAA' rating level, it said.

The number of confirmed coronavirus cases exceeded 1.4 million worldwide, while the death toll surged above 82,000, according to a data compiled by Johns Hopkins University.

New York state registered 731 new coronavirus deaths on Tuesday, its biggest one-day jump since the outbreak.

The aussie fell to 0.6116 against the greenback, from a high of 0.6177 seen at 7:30 pm ET. Immediate support for the currency is likely seen around the 0.60 level.

Pulling away from an early high of 67.17 against the yen, the aussie dropped to 66.48. Should the currency falls further, it is likely to test support around the 65.00 level.

The aussie slipped to 0.8594 against the loonie and 1.0286 against the kiwi, off its early highs of 0.8647 and 1.0334, respectively. Next key support for the currency is likely seen around 0.84 against the loonie and 1.01 against the kiwi.

The aussie hit a 2-day low of 1.7758 against the euro, from an early high of 1.7627. Further fall in the currency may challenge support around the 1.80 level.

Looking ahead, at 8:15 am ET, Canada housing starts for March are due.

At 8:30 am ET, Canada building permits for February will be released.

The Fed minutes from the March meeting are set for release in the New York session.