australian-dollar-bank-notes- AUD

The Australian dollar is slightly higher against the US dollar on Wednesday.

News that China is resuming production and is soon to lift travel restrictions on the worst hit areas from the coronavirus has bolstered the Australian dollar.

Paradoxically, the Australian dollar has been more of a beneficiary of a big new $2 trillion spending package than the United States dollar because big if the United States can avoid a big economic downturn that is good for the global economy and for Australian exports.

AUD/USD was higher by 13 pips (+0.17%) to 0.5966 with a daily range of 0.5931 to 0.6073 as of 5pm GMT.

The currency pair rallied up through 0.60 before dropping 100 pips from its highs, leaving it with a hefty 2.82% gain on the week to date.

The Aussie benefits from Chinese reaction to the coronavirus outbreak

Apparent success at containing the COVID-19 outbreak in China has some economists calling the bottom in the Asian economic downturn. When China was at the height of its coronavirus outbreak, the Australian dollar sold off as a liquid currency proxy for the Chinese economy. The Chinese national currency, the Renminbi is pegged against the dollar. Now that te outbreak has shifted to Europe, the Aussie and other Asian currencies have started to recover.

China has said it is on the path to normality with travel links into Hubei province opening in early April with Wuhan set to end its lockdown after new infections dropped to zero.

The US Senate is expected to vote later today on the massive new $2 trillion spending plan brokered between the US Treasury and Congress. It will be the biggest spending plan in US history, exceeding even the bailouts in the 2008 financial crisis.

The details are still sparse but there will be $500 billion in loans for distressed companies, $350 billion in small business loans, $250 billion for direct payments to individuals and families and $250 billion in extra unemployment insurance benefits. Senators are expected to pass it and Treasury Secretary Steve Mnuchin told journalists that the President would “absolutely” sign it if Congress passes it. 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.