Fitch: Australia and New Zealand public finances weaken amid coronavirus
|Fitch says that Australia and New Zealand public finances are weakened amid coronavirus.
Fallout from the coronavirus pandemic will exert pressure on credit metrics in Australia (AAA/Stable) and New Zealand (AA/Positive), but our ratings assessments will also take into account the record of prudent fiscal management in both countries, says Fitch Ratings.
The pandemic will have substantial effects on the metrics that feed into our Sovereign Rating Model for both Australia and New Zealand. Public finances in particular have been affected. Government spending will be pushed up by massive stimulus packages, while revenues will fall as economic activity is dampened by government lockdowns designed to curb the spread of COVID-19.
Antipodeans opening performances
- AUD/USD battles 0.6000 amid broad USD strength, oil slump
- NZD/USD drops back to 0.5850 despite upbeat RBNZ comments
AUD/NZD Has broken its 2-day downtrend but remains in a broad trading range over a multi-week horizon. However, COVID-19 is a fluid situation and its impossible to Difficult to pin anything on economics at the moment. Meanwhile, both nations are doing well at containing the virus, so far and with signs that China is emerging out of its economic slump, then the antipodeans could find themselves a sweet spot.
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