Australian Dollar Mixed After Lowe’s Speech and Moody’s Downgrade



Australian 20-dollar bill with a 1 AUD coinThe Australian dollar was mixed after the speech of Phillip Lowe, Reserve Bank of Australia Governor, and as Moody’s Investors Service downgraded credit ratings of several Australian Banks. The Aussie fell against such majors like the US dollar and the Swiss franc, but was flat versus the euro and gained on the weak yen.

Lowe mentioned some negative factors in his speech, saying that “growth in wages is unusually low.” Yet overall, his tone sounded rather upbeat as he stated:

In Australia, it is likely that growth over the next couple of years will be a bit stronger than it has been recently. The pick-up in the global economy is helping us.

Meanwhile, Moody’s downgraded several Australian banks, including the biggest ones like ANZ, CBA, NAB, and Westpac.

AUD/USD fell from 0.7616 to 0.7596 as of 13:39 GMT today. AUD/JPY rose from 84.45 to 84.56.

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