AUD Strong After Unveiling of A$1.2 Billion Stimulus Package

The Australian dollar was strong today, reversing yesterday’s losses and gaining against all of its most-traded rivals. With the lack of any major macroeconomic releases, the possible reason for the currency’s strength was the unveiling of a stimulus package for Australia’s tourism industry.
Australian Prime Minister Scott Morrison unveiled a $1.2 stimulus package aimed to support the tourism industry. The aid includes 800,000 half-priced plane tickets to tourism-dependent regions, which should encourage more travel, as well as loans and subsidies to businesses. With the tourism industry being perhaps the hardest-hit one by the COVID-19 pandemic and the resulting travel restrictions, it makes sense for the government to support the sector. That is especially true because tourism is an important part of the Australian economy, representing about 3.0% of the country’s gross domestic product.
As for macro releases, the only report that came out on Thursday was the Inflation Expectations released by the Melbourne Institute. It showed that the indicator rose to 4.1% in March from 3.7% in February.
There are no economic reports in Australia scheduled for tomorrow. This week was light in terms of macro releases, and the next one will not be much different. Yet at least one important report will come out next Thursday — employment data from the Australian Bureau of Statistics. Australian employment has been showing significant growth since October, though the pace of growth seems to be slowing.
AUD/USD rose from 0.7733 to 0.7767 as of 7:26 GMT today. EUR/AUD fell from 1.5417 to 1.5368. AUD/JPY climbed from 83.82 to 84.40.
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Original from: www.earnforex.com