Not so long ago, Australia conducted federal elections. The results may well affect the country’s sovereign ratings, Fitch Ratings reports. At the same time, the Westpac consumer confidence index showed another decline in June 2016.
Fitch experts say that a tiny advantage of the coalitional government as the result of the voting may well complicate things significantly when it comes to conducting existing policies. At the same time, it is expected that the legislation program will be changed over the mid term. Fitch experts also remind us that the key factor backing Australia’s strong sovereign rating has a lot to do with the current long-term policy of consistent financial consolidation.
The rating agency is also determined to find out what impact the parliamentary changes may have on the country’s financial future in order to revise the forecast if necessary. They mentioned some new risks and political uncertainty leading to increasing economic risks.
As for the Westpac consumer confidence index, it dropped by 3.0% in June. This was another month of weakness after May’s 1.0% drop. Still, year-over-year, the index managed to gain 7,6% in June.
FOREX
Masterforex-V Academy experts say that the Australian Dollar is still rallying against the U.S. Dollar within the scope of the same mid-term uptrend. To be more specific, AUDUSD is currently building wave A/B of level Weekly. There is a sub-wave represented by wave a(C )/C inside of the bigger move.
For now, the key levels of resistance are represented by such levels as MF pivot 0.7718 and the 0.7833 high. If the price breaks below MF pivot 0.7406 and the bottom of the ascending MF sloping channel, the current rally will be completed.
