Ratings agency Standard and Poor's has maintained Australia's sovereign credit rating at 'AAA', and raised its outlook to stable from negative on the expectation of the budget returning to surplus early in the next decade.
The Australian dollar is heading for its best week in over a year as risk sentiment recovers from the latest round of Sino-US tariffs and a major ratings agency upgraded its outlook on Australia's credit standing.
Asian stocks have extended gains after Wall Street's S&P 500 set a new all-time high, while the US dollar slipped as investors viewed Beijing's and Washington's fresh exchange of import tariffs as less harmful than initially feared.
The US dollar is struggling near two-month lows and the yen has also sagged on reduced safe haven demand as investors' views switched to the Sino-US trade conflict being less damaging to global growth than initially feared.
A bounce in world stocks in relief that the fresh US and Chinese tariffs on reciprocal imports were less harsh than feared has continued, although investors remained wary about the next steps in the US-Sino trade war.