20 Feb 2015
AUD supported on no risk to Australia's AAA rating - Westpac
FXStreet (Guatemala) - Sean Callow, analyst at Westpac Banking Corporation noted the recent moves in the Aussie, caused by rating comments from Standard & Poor’s, extended to 0.7757 before it steadied around 0.7790.
Key Quotes:
"There were two interviews with the same S&P analyst, which in full made clear that there was no near term risk to Australia’s AAA credit rating, including in response to this year’s budget, that the ‘risk’ to AAA was in the event of a global shock such as the GFC."
"However, the response on AUD does indicate market sensitivity on this subject. On the day, AUD/USD should spend most of its time at the lower end of a 0.7750 – 0.7840 range."
Key Quotes:
"There were two interviews with the same S&P analyst, which in full made clear that there was no near term risk to Australia’s AAA credit rating, including in response to this year’s budget, that the ‘risk’ to AAA was in the event of a global shock such as the GFC."
"However, the response on AUD does indicate market sensitivity on this subject. On the day, AUD/USD should spend most of its time at the lower end of a 0.7750 – 0.7840 range."