Following the release of the Australian Federal Budget, S&P Global Ratings was quick to offer its review on the same.

Key takeaways

“The budget won't greatly add to inflationary pressures.“

“High commodity prices delivering large windfall in Australia budget.”

“Improved fiscal outcomes underpins sovereign rating for Australia.“

“Sharp correction in commodity prices could reverse recent gains in Australia's external accounts and, along with rising interest costs, could present downside to the AAA rating.”

Market reaction

AUD/USD is keeping its range just above 0.6300 on the above headlines. The spot is trading at 0.6310, almost unchanged on the day.