Fitch ups Australia sovereign credit rating to AAA

Fitch has upgraded Australia's long-term foreign currency issuer default rating to AAA from AA+ with a stable outlook. The upgrade reflected the country's "fundamental credit strengths, including its high value-added economy, strong political, civil and social institutions and its flexible policy framework," the ratings firm said.

Australia holds rate steady

The interest rate-setting board of Australia’s central bank left its key interest rate on hold Tuesday, as it downgraded its growth outlook for 2011.

The Reserve Bank of Australia board kept its key cash rate on hold at 4.75%, as widely expected, having last raised its key cash rate in November 2010.

Australian economy shrinks 1.2% in March quarter

Gross domestic product for the January-March period fell 1.2%, according to the Australian Bureau of Statistics. That was the biggest drop since the March quarter of 1991, when GDP contracted 1.3%.

On an annual basis to the end of March, the economy grew 1%, according to the ABS data.

Australia's current-account deficit widens

Australia'a seasonally adjusted current-account deficit rose 2.35 billion Australian dollars ($2.5 billion), or 29%, to A$10.45 billion in the three months to the end of March. Exports dropped A$2.0 billion, or 3%, and imports rose A$1.32 billion, or 2%.

Jobs data weighs on Australian markets

Australia’s share and currency markets took a leg down on Thursday after the release of weaker jobs data raised doubts about the ongoing strength of the economy. Although the country’s unemployment rate met expectations in April, holding steady at 4.9%, the number of employed unexpectedly dropped to 11.437 million, from 11.459 million in March.