Australian PM Morrison: Targeted fiscal stimulus needed after coronavirus outbreak

Dhwani Mehta FXStreet

Targeted fiscal stimulus is needed after the coronavirus outbreak, Australian PM Morrison said on Monday, as markets await a potential G7 coordinated response to fight the negative economic impact of the virus spread.

Further comments

Fiscal response to be targeted, measurable, scalable.

Government is focused on jobs, cash flow and investment.

Government is 'highly aligned' with the RBA on response.

Expects the big four banks to pass on full interest rate cut if the RBA lowers the cash rate.

AUD/USD attacks 0.6500

On the above comments, the Aussie dollar extends the drops, as AUD/USD now tests the 0.6500 support area, down 0.40% on the day.

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.

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