Even in countries that have imposed less strict lockdowns such as Australia, the hit to the economies has still been severe, per MUFG Bank.
“The Australian economy lost a record 594.3k jobs in April, and the unemployment rate jumped by 1 percentage point to 6.2%. Total hours worked collapsed by a record 9% capturing the huge hit to household incomes.”
“The RBA has been scaling back policy support as financial market conditions improve, and has decided against buying government bonds this week.”
“The RBNZ increased QE purchases to NZD60 billion from NZD33 billion and opened the door to negative rates.”
“The widening policy divergence is reinforcing upward pressure on the AUD/NZD rate.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.