GBP/AUD continues bearish mood on Wednesday, after attempting a recovery yesterday. Currently, the pair is trading at 1.9628, down 0.52% as of 7:50 AM UTC.

Central Banks’ QE Boost Supports Aussie

The Australian dollar has gained more confidence after the US Fed announced unlimited quantitative easing (QE), which boosted risk assets that previously tumbled against the US dollar.

The Reserve Bank of Australia also ramped up its stimulus measures. Earlier today, the central bank said it would buy A$2 billion in long-date semi-government bonds as part of its QE programme. This is the first time when the RBA is ready to buy semis, which shows the magnitude of the crisis caused by COVID pandemic. Yesterday, the Fed shocked the markets when it said it would buy corporate bonds.

Australia’s semi-government bond market has been under massive liquidity pressure in recent weeks, as many companies across the country were forced to shut down.

State government revenues will be hit as well, as the government halts property auctions from today.

ANZ economist David Plank commented:

This has material implications for state government revenues, some of whom rely heavily on stamp duty from home sales. As a consequence, we expect to see considerable near-term volatility in semi-government spreads.”

While the spread of the virus hasn’t reached the UK levels, Australia wants to act promptly. The government has reported over 2,250 cases so far.

Yesterday, Australia limited the number of people permitted at weddings, funerals, and gatherings. Besides this, citizens cannot eat in shopping centre food courts anymore.

This will be a significant sacrifice, I know,” Prime Minister Scott Morrison said.

Economists argue that recent restrictions on the movement of people will result in the first recession in 30 years.

Westpac chief economist Bill Evans stated:

On our analysis, the cyclical budget deterioration in the COVID-19 recession will potentially be in the order of 5% of GDP, with risks to the upside.”

As for the UK, the government reported the biggest daily increase in COVID-related deaths. The number of confirmed cases surged on Tuesday by 21% to 8,077, while the death toll rose by 87 to 422. 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.