Australia’s budget highlights credit-positive growth recovery – Fitch

Early Thursday in Asia, the global rating agency Fitch praised the Australian Budget, announced earlier in the week.

“Australia’s budget, presented by the government on 11 May, confirms that the recent strong economic and labor market recovery has resulted in an improvement in public finances, which may help to reduce downside risks to the country’s ‘AAA’ rating provided the recovery remains on track,” said the rating giant.

Fitch affirmed AAA rating in February but with a negative outlook while expecting “general government gross debt/GDP would peak in the fiscal year ending June 2023 (FY23) and then decline,” per the news.

However, the latest forecasts were cited helping for a “stronger outcome than we had assumed, meaning that the debt trajectory will start and peak at a lower level than we had anticipated,” per the latest announcement.

FX implications

AUD/USD fails to cheer the upbeat news as it contrasts with the S&P’s rating outlook, published on May 11, as well as market fears following the US inflation jump.

Read: AUD/USD: Pressured towards 0.7700 after US inflation showdown

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Ask any questions about trading!

Join Actionable Trade Ideas webinars every week!    

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD challenging bears at around 1.2200

The shared currency managed to recover modestly against its American rival, struggling to overcome the critical 1.22 threshold. Focus remains on the US Federal Reserve taper tantrum, also on ECB’s decision.


GBP/USD bounces from near 1.4100 as mood improves

GBP/USD bounced from around 1.4100 and trades around 1.4170 amid easing dollar’s demand. UK’s spokesman said that nothing in current UK data would prevent lockdown easing, backing the pound.


XAU/USD extends daily rebound toward $1,900

Following Thursday's steep decline, the XAU/USD pair staged a decisive rebound on Friday but ended up snapping a four-week winning streak. 

Gold News

VeChain death cross writes a bearish outlook

VeChain price rests at a major inflection point on the twelve-hour chart, complicated by the notable resistance defined by the intersection of two important moving averages and the recently triggered death cross

Read more

‘Taper’ talk is back: Will a tantrum follow?

‘Taper’ talk from the Fed is back in focus. But for now, it’s all talk and no action. Last week, former NY Fed President William Dudley said the central bank will begin the process of tapering – winding down its monthly asset purchases – by year end.

Read more