The Australian dollar is higher against the US dollar on Tuesday.

Reduced demand for havens and a renewed risk appetite ahead of a possible new stimulus bill in the United States helped the Aussie stabilise on Tuesday. Gains were capped amid ongoing uncertainty about the economic damage being caused by government efforts to control the coronavirus.

The US dollar has paused its inexorable rise over the past few weeks following a series of new measures from the Federal Reserve intended to increase the availability of US dollars overseas and to businesses in the United States who need them.

AUD/USD was higher by 81 pips (+1.40%) to 0.5908 with a daily range of 0.5814 to 0.5976 as of 5pm GMT.

The currency pair has stabilised, gaining 1.99% on the week to date but is running into selling pressure ahead of 0.60.

Australian dollar rise on hopes for big US stimulus

The new quantitative easing program in Australia seems to benefitting the Australian dollar for its promising positive economic effects. Australia has been introducing new states-wide lockdown procedures to contain the coronavirus. The economic effect of these domestic measures in combination with a possible global recession is limiting upside in the Aussie.

PMI data from Australia suggests Australia is moving in the direction of recession. The flash composite PMI for Australia dropped to 40.7 in March from 49 in February.

US dollar drops as US services sink further into contraction

Democratic House Speaker Nancy Pelosi has said on Tuesday she was optimistic on a deal to stimulate the US economy that is being weighed down by the outbreak of the coronavirus. The potential for a deal has cut the panic selling of assets that caused a spike in demand for cash.

The US dollar was mostly moving as it relates to being a safe haven but economic data from the United States is now starting to show the impact of the coronavirus. Weekly jobless claims could reach into the million this week according to some of the worst forecast on Wall Street. On Tuesday the flash reading for the US Markit February services PMI was 39.1, down from 49..4 in February. 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.