Fitch Rating Agency commented that at the present time Australian and New Zealand banks are facing difficult pressures that may lead to lower profits, due to the trend now prevailing in reducing interest from global central banks due to the Corona crisis.
The Reserve Bank of Australia cut interest by 25 basis points, from 0.75% to 0.50%. Another cut is expected during the next meeting, as investors expect an expectation of certainty. The Reserve Bank of New Zealand may cut interest rates due to the worsening of the Corona virus crisis, economic stimulus, slow growth and recession.
Today, all commodity-linked currencies led by the Canadian, New Zealand and Australian dollars fell sharply today after the markets' infatuation, especially after the agency's report which showed that the risks continue to rise against the common economies in trade with China in light of the ongoing Corona crisis
