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S&P affirms Australia AAA rating, stable outlook for AUD
BNY said weaker real GDP growth, above target inflation, and weak productivity are key AUD headwinds despite the rating confirmation.
BNY’s Geoff Yu said S&P has affirmed Australia’s AAA sovereign rating and kept a stable outlook, pointing to strong institutions and modest public debt, according to an analysis featured by FXStreet.
The agency expects Australia’s deficits to remain contained and net debt to stabilize over the forecast horizon, a backdrop that could support investor confidence in the Australian dollar.
FXStreet highlighted that BNY still sees potential pressure on the AUD, with slower real GDP growth, persistent above target inflation, and weak productivity cited as the main headwinds.