Australian PM Morrison: National Cabinet agreed three-step plan to achieve COVID-safe economy by July

Dhwani Mehta FXStreet

National Cabinet agreed three-step plan to achieve COVID-safe economy by July, said Australian Prime Minister (PM) Scott Morrison in a news briefing on Friday.

Further comments

Today move ahead with re-opening economy.

Next step is to rebuild confidence in economy.

States must move at own pace.

Treasury estimates 850,000 jobs will be restored under plan.

To allow gatherings up to 10 people.

Retail and small cafes and restaurants reopening.

Step two will allow larger size gatherings up to 20 people.

Step three to allow gatherings up to 100 people.

Open to allowing international students in at some point.

Cannot see international travel in foreseeable future.

Seeing more and more support for independent inquiry in coronavirus outbreak.

Market reaction

The economic re-opening plan combined with renewed US-China trade optimism is keeping the upbeat tone intact around the aussie dollar, as AUD/USD keeps its range near multi-day tops of 0.6548. The bulls look to test the 0.66 handle.

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

EUR/USD appears supported by the 200-day SMA, for now

Following an early pullback to multi-week lows near 1.1670, EUR/USD now manages to reclaim the 1.1700 region as the NA session draws to a close on Monday. The steep retracement in spot follows the equally strong move higher in the US Dollar, as investors continue to assess the geopolitical landscape in the wake of the US and Israel attacks on Iran.

GBP/USD hits new yearly lows near 1.3300

GBP/USD adds to the recent bearish tone, approaching to the key 1.3300 support to reach fresh YTD troughs against the backdrop of the robust performance of the US Dollar. Indeed, Cable’s decline comes amid the firm demand for the safe-haven space in the wake of the US and Israel attacks to Iran.

Gold eases some ground, approaches $5,300

Gold now surrenders part of the earlier advance, reshifting its attenton to the $5,300 zone per troy ounce at the beginning of the week. Indeed, the yellow metal’s firm performance appears propped up by incresing geopolitical jitters in the Middle East, which at the same time fuels the demand for the safe-haven space.