The Australian dollar is flat against the US dollar on Monday.

Movements in the Aussie – US dollar pair were more range bound in concert with global stock markets which flipped back and forth between negative and positive.

The US dollar dropped when the Federal Reserve announced a series of new measures to protect US and global asset markets, including an open-ended QE program. However, bond purchases with freshly minted money from the RBA served to weaken the Aussie.

AUD/USD was higher by 2 pips (+0.06%) to 0.5803 with a daily range of 0.5701 to 0.5842 as of 5pm GMT.

The currency pair spiked from lows of the day above 0.57 to above 0.58 but sellers came back in, sending it back to 0.575.

Australian dollar flat with choppy sentiment

The RBA bought AUD $2.3 billion of government bonds as part of its QE program on Monday, flooding the systems with the extra currency. It is the first time Australia has embarked on a quantitative easing program of its own, having gone through the 2008 financial crisis without a recession.

Now lawmakers in Australia are shuttering down non-essential business and closing state borders to prevent the spread of the coronavirus. The slowdown in economic activity at home, coupled with the ongoing shutdown in China and newly initiated lockdowns in Europe and the US mean an Australian recession looks assured.

A government spending package on the same level as that in neighbouring New Zealand on a percent of GDP basis has not yet materialised. That means chances are that the Reserve Bank of Australia will have to fill the void with more monetary easing which stands to weaken the Aussie.

US dollar weaker by Fed’s latest QE infinity

The US dollar had the opposing pressures of new monetary easing measures and its status as a haven on Monday.

A sharp rise in the number of coronavirus cases in New York State, home to NYC and one of, if not the world’s leading financial hub shook markets despite extra bond buying and loan assurances from the Federal Reserve. 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.