AUD/NZD falls to record lows after S & P warns of Aus rating at risk

FXStreet (Mumbai) - The Australian dollar falls against its Oz counterpart in the Asian session, knocking the AUD/NZD off to record lows of 1.0306 levels after news crossed the wires that S &P warns Australia of a rating downgrade on the back of a strained Aus budget.

Slips from 1.0353 levels

Currently, the AUD/NZD cross sinks by -0.42% to at all-time lows of 1.0306 levels. The cross in AUD/NZD slumped largely on Aussie weakness after S&P backed warnings by the Australian central bank which could put the country's AAA rating at risk after Australia's budget outlook weakened sharply in the last six months.

S&P's sovereign analyst Craig Michael quoted, "If there is a significant external shock, it's very likely that that would have a significant budget impact like it did in the global financial crisis."

The cross edges lower wiping out previous gains as the AUD/USD trades at 0.7795 levels, down -0.19% on the day. While NZD/USD also trades higher by 0.28% to trade at 0.7559, at time of writing.

AUD/NZD Technical Levels

The pair has an immediate resistance at 1.0362 levels, above which gains could be extended to 1.0390 levels. On the flip side, support is seen at 1.0300 levels, from here it to below 1.0260 levels.

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