Aussie downgraded by one notch

Wednesday, 18 May 2011 11:55

Moody's downgrades Australia.  Four major banks of Australia were downgraded from Aa1 to Aa2, with the agency also cutting its view on the bank's subordinated debt to Aa3 from Aa2, as well as the financial strength rating from B to B-.  As Moody's stated the cut downs reflect their view of Australian Banking.

Also, Labour Price Index was released earlier this morning in Australia at 0.8%; down from 1.0% and lower than the market expected 1.2%.

AUD/USD is currently trading 1.0623.  EUR/AUD is at 1.3429.

The euro seems to pick the pace up as it keeps off its 7-week low against the greenback.  The pair is currenctly trading at 1.4266.  The eurozone currency fell to a low of 1.4050 which marked a low since March.  Before its downfall, the euro strengthened against the dollar reaching a high of 1.4950 marking 3 year lows for the dollar.