An article in the Australian Financial Review today on ANZ warning of AUD risks if the AAA is lost
ANZ FX strategist Daniel Been:
- AUD remains overvalued, higher than fundamentals would normally allow
- Says this is due partly to the Triple A credit rating
- AUD could head towards US50¢ if it loses its de facto 'safe-haven' AAA status
- "Our view is that a currency that has a positive current account position, a lower external financial burden, less cyclicality, and a lower total debt burden should be considered a more appropriate safe haven than one which simply has a AAA rating attached to its government debt"
More at the AFR, here, which may be gated
AUD is having a decent day, helped along by the 'risk' favour in Asia today: