GBP/USD: Dollar Strengthens As Investors Look To G20

The Australian dollar was lower against the US dollar on Wednesday amid heightened fears over the COVID-19 outbreak and its affect on economic growth and the resulting demand for Australian exports.

AUD/USD was lower by 36 pips (-0.51%) to 0.6567 with a daily price range of 0.656 to 0.661 as of 3.30pm GMT. The currency pair hit fresh 11-year lows before edging off lows of the day in the early afternoon. Weekly losses stand at -0.94%.

Risk sentiment surrounding the coronavirus continues to be what guides the Australian dollar-US dollar exchange rate – with the Australian dollar most exposed to slowing global growth by its commodity exports and the US dollar a relative haven as the world reserve currency.

The Australian currency plunged to new decade lows with a move below 0.655 to the dollar but recouped some of the losses when Wall Street opened in the black. In volatile morning trading the Dow Jones Industrial average was up 350 points at the time of writing – but that only scratches the surface of 1900 points loss in the last two days, the biggest two-day points loss on the Dow Jones Industrial Average ever.

USD boosted by Treasury yields

Stocks rebounded alongside Treasury yields, with the US 10-year yield jumping from the record lows reached on Tuesday. The bounce is on shaky ground with little in the way of fundamental backing, meaning if a bottom is in stock markets, it is unlikely to be a straight line higher from here. A smaller than expected build in US oil inventories did offer some hope the demand hit from the coronavirus is not (yet) as bad as some investors are fearing.

US President Trump will hold a press conference to talk about the coronavirus at 11pm GMT. It seems more likely to be a pep talk than a warning. Trump earlier tweeted blaming the media for hyping up the coronavirus saying, “USA in great shape!” The Centre for Disease Control (CDC) officials will attend the presser. The CDC has been less optimistic, warning Americans should take precautions. is a news site only and not a currency trading platform. is a site operated by TransferWise Inc. (“We”, “Us”), a Delaware Corporation. We do not guarantee that the website will operate in an uninterrupted or error-free manner or is free of viruses or other harmful components. The content on our site is provided for general information only and is not intended as an exhaustive treatment of its subject. We expressly disclaim any contractual or fiduciary relationship with you on the basis of the content of our site, any you may not rely thereon for any purpose. You should consult with qualified professionals or specialists before taking, or refraining from, any action on the basis of the content on our site. Although we make reasonable efforts to update the information on our site, we make no representations, warranties or guarantees, whether express or implied, that the content on our site is accurate, complete or up to date, and DISCLAIM ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. Some of the content posted on this site has been commissioned by Us, but is the work of independent contractors. These contractors are not employees, workers, agents or partners of TransferWise and they do not hold themselves out as one. The information and content posted by these independent contractors have not been verified or approved by Us. The views expressed by these independent contractors on do not represent our views.