FXStreet reports that economists at TD Securities note the Australian Government announced a significant A$130b fiscal package to encourage employers to hold on to their staff for the following six months.

“The Australian Government announced the 3rd fiscal package in as many weeks, delivering a $130b stimulus in the form of wage subsidies, going to 6 million workers at a flat rate of $1500 per fortnight, regardless of their salary under the JobKeeper program.”

“This is the biggest fiscal package ever announced in Australia. Fiscal stimulus from the three packages comes in at A$213b, which equates to roughly just under 11% of GDP.” 

“For the AUD, we expect markets to reward those countries and currencies viewed as proactive in addressing risks to growth, so the FX hit should be shallow if any.”