AUD recovered from early losses after S&P cut its outlook on Australia - BBH

Research Team at BBH, notes that the Aussie recovered from early losses after S&P cut its outlook on Australia’s AAA rating from stable to negative. 

Key Quotes

“The agency said that the move reflects risks that “material government budget deficits may persist for several years with little improvement.”  S&P said there is a one in three chance that the rating is lowered within the next two years if parliament is unable to enact sufficient measures to move to a balanced position by the early 2020s. 

During the North American session, the US reports June Challenger job cuts, ADP jobs, and weekly jobless claims.  ADP consensus is 160k vs. 173k in May.  Canada reports May building permits (1.5% m/m expected) and June Ivey PMI (51.2 expected).”