GBP/AUD is declining on Friday, after two consecutive bullish sessions. Currently, the pair is trading at 2.0050, down 0.32% as of 7:20 AM UTC.
Larger timeframes show that the pound has gradually gained dominance, breaking above the psychological level at 2.00 earlier this month for the first time since mid-2016. At the beginning of the year, the pair was trading below 1.88.
Nevertheless, the Australian dollar has gained confidence during the last few days as investors dump US dollars after the Fed announced unlimited quantitative easing while the US jobs market is shaking due to the coronavirus crisis.
UK Government to Pay Self-Employed 80% of Income
The pound has been weakening amid worries that the rapidly spreading coronavirus could hurt the British economy. Investors are not even mentioning the no-deal Brexit fears anymore.
The Bank of England maintained its interest rate at 0.10% and continues to buy government bonds to support the economy.
Finance Minister Rishi Sunak said yesterday that the UK had launched the most significant economic measures by any government ever, but the difficult times cannot be avoided. He stated:
“What we have done will, I believe, stand as one of the most significant economic interventions at any point in the history of the British state and by any government anywhere in the world.”
Sunak is referring including to a package to pay self-employed 80% of their average income during the last three years.
“It will be open to anyone with trading profits up to 50,000 pounds,” the minister explained.
Australia Introduces Tighter Measures Aimed at Returning Citizens
In Australia, the central bank continues to buy government bonds as well, even though the country seems to handle the outbreak much better compared to many European nations. To curb the spread of the virus, Australia will introduce enforced quarantine starting from tomorrow for those who return from overseas.
Prime Minister Scott Morrison said earlier today that returning Australians account for about 2,000 of the total 3,000 coronavirus cases.
He said during a briefing:
“As time has gone on, the risk of those who are returning from other parts of the world actually increases.”
