The British pound is higher against the Australian dollar on Thursday.
The exchange rate has been shifting out of its sideway range this week and has again pushed up to the spike high seen on March 19.
The strength in Sterling owes in part to its history as a European regional haven given the rising breakup risk impacting the euro.
The Aussie dollar is slightly lower on the day despite the improved risk sentiment across stock and bond markets thanks largely to strength of the US dollar.
Pound versus Australian dollar was up by 105 pips (+0.52%) to 2.0488 with a daily range of 2.0280 to 2.0598 as of 5.30pm GMT.
GBP/AUD held 2.03 as support twice before rallying up above 2.05 to a new 2-week high. Week-to-date gains stand at 1.37%.
British pound benefits from euro corona bond fallout
Markets are starting to clamour for so-called corona bonds to be issued by the Eurozone to sure up its fiscal response to the crisis. It would be a massive new leap in national integration whereby Germany would share in debt issuance with the likely of Italy.
Having already plummeted to historic decade lows, the pound is being seen as a relative haven from the potential currency weakness that could still strike the euro as well as other major currencies like the Japanese yen.
The UK coronavirus statistics continue to track the path being followed by other hard-hit European countries and offer no explanation for the strength in the currency. Deaths rose to 2,921 from 2,352 for the biggest gain so far.
Australian dollar holds up as free childcare announced
New social safety net measures in Australia to support the economy through the coronavirus outbreak limited the losses in the Aussie.
Prime Minister Scott Morrison announced free childcare for critical workers including medical professionals and cleaners. Many childcare centres had shut as people were forced to work from home.
Morrison said on Thursday that the testing rate for the coronavirus was at 1% of the population, the first country to achieve that standard per capita. It is a big achievement but Australia has a relatively small population, about a third of that of Italy and half that of Spain.
