FITCH RATINGS “AAA” HELPS STRENGTHEN AUSTRALIAN DOLLAR

22.02.2021
Market News
The Australian Dollar is the strongest currency in the foreign exchange market today, rising above almost all other major currencies except the New Zealand Dollar.
Fitch Ratings gave an "AAA" score to Australia and strengthened investor confidence in the Australian economy this week. Fitch Ratings in its official statement stated that:

The “AAA” rating given to Australia is based on strong institutions as well as an effective policy framework, proven when supporting economic growth even at the time of the global coronavirus outbreak last year. However, we are targeting negative growth for Australia this year due to the increase in public debt / GDP due to the current pandemic. ”

Fitch expects Australia's Gross Domestic Product (GDP) to contract by 2.8% by 2020, compared to the median level of around 3.8%. The agency also expects Australia's GDP to grow by 2021 at 3.8% and 2.7% by 2022.

Market analysts attributed the strengthening of the Australian currency to the sharp rise in prices of iron ore and copper metals. Copper metal recorded the highest price increase in this decade and the trend of the metal industry showed no signs of slowing down so far.

The AUD / USD pair has risen to around 07900 tonight, while the EUR / AUD pair continues to decline and is currently at around 1.53500.