# AUD/USD: Sideways churn continues even as Fitch revises Australia's rating outlook to negative — Octa

> Fitch affirmed Australia's AAA rating but cut the outlook to negative from stable, citing coronavirus effects on the economy and public finances. Fitch expects the $2 trillion economy to contract 5% in 2020, with recovery beginning in the second half. AUD/USD stayed in a 0.6550 to 0.6576 range, supported by the RBA's reduced bond purchases.

- Date: 2020-05-22 · published 2020-05-22T12:00:00.000Z
- Category: macro · region Australia · magnitude low
- Page: https://feedsoft.ai/events/53414-aud-usd-sideways-churn-continues-even-as-fitch-revises-australia-s-rating
- Commodities: [Australian Dollar (USD per AUD)](https://feedsoft.ai/c/AUDUSD.md)

## Why it matters

A weaker Australian growth outlook reduces domestic demand for feed inputs in a contracting economy. The currency reaction was muted, so the direct effect on feed commodity prices is small.

## Read by commodity

- AUDUSD: neutral

## Sources

- octaafrica.net: https://www.octaafrica.net/markets/news/view/823039/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.