More pressure on the Aussie today after Governor Lowe kept it low. The credit rating agency Moody’s downgraded Australia’s Big Four banks. Are they worried about house prices? This is one of the worries of the RBA as well.
The banks are ANZ, CBA, NAB, and Westpac. In addition, smaller banks have also been downgraded.
Australia still enjoys a perfect credit rating: AAA from three rating agencies, or a 9 As if you wish. Does the downgrade of its banks precede a downgrade of the sovereign?
AUD/USD slips under 0.76, with 0.7586 the low so far.
Support awaits at 0.7565, a level that supported the pair a few days ago after it made an attempt to the upside. Resistance is at the stubborn high of 0.7640.
More: AUD/USD weekly outlook
Here is how the downfall looks on the 30-minute chart. Click to see a larger image:
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