GBP/AUD is slightly bullish on Monday. Currently, the pair is trading at 2.0011, up 0.02% as of 6:55, though the price peaked at 2.0205 a few hours ago.
GBP/AUD is still following an uptrend that started on March 4.
Aussie Hit by China’s Economic Updates, Coronavirus Fears
The Aussie weakened after China reported shocking declines in industrial production, fixed-asset investment, and retail sales, while unemployed jumped by about 1% in the first two months of the year amid the coronavirus epidemic and the tight measures to stifle it. China is Australia’s largest trade partner.
Besides the COVID-19 outbreak, the Australian economy is also struggling with the repercussions of one of the worst fire seasons in its history.
On Monday, the Reserve Bank of Australia (RBA) pumped more cash into the financial system as the panic threatens to hit liquidity and increase borrowing costs. The central bank injected another $3.64 billion into the economy via repurchase agreements. Initially, it intended to pump less than half of that.
Three sources familiar with the matter told Reuters that Australia, which confirmed about 300 cases of the new coronavirus, is thinking about the second round of economic boost. The sources said that Prime Minister Scott Morrison met with senior Cabinet officials to talk about “scaling-up” its stimulus package.
Previously, the government said it would pump the equivalent of $11.4 billion into its economy.
Recently, the Victoria state and the Australian Capital Territory (ACT), which hosts the capital city of Canberra, declared a state of emergency after two persons died from the virus. Thus the total death toll in Australia rose to 5. The proclamations allow chief health officers to issue quarantine orders to cover entire businesses and suburbs.
Victorian Premier Daniel Andrews told the media:
“These powers have never been used before. This, I hope provides a clear sense about the unprecedented nature of this public health emergency, this really significant challenge.”
Elsewhere, the number of deaths caused by the coronavirus in the UK surged by 14 to 35 on Sunday, while new cases jumped 20% to 1,372.
British Health Secretary Matt Hancock said that those aged over 70 would be protected from the COVID-19 by self-isolating for up to four months.
