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Supported risk appetite helped the AUD overcome the downgrade in credit rating outlook to outperform across the G-10 space and the AUD/USD hammered the 0.6200 resistance, per OCBC Bank.

Key quotes

“The AUD/USD breached the 0.6200 resistance, as stabilizing risk appetite offset the S&P’s cut of Australia’s credit-rating outlook.”

“If the pair sustains above 0.6200, there may be a renewed upside momentum into next week.”

“Note also that short-term implied valuations have pushed higher, while spot still lags even after the recent extension higher.”