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US President Donald Trump signed four executive orders related to coronavirus economic relief, including expanded unemployment benefits, a temporary payroll tax deferral, eviction protection and student-loan relief. Negotiations between Democrats and Republicans reached an impasse last week over overall aid to state and local governments and the amount of supplementary unemployment benefits prompting the White House to intervene announcing four executive actions to work around the impasse on Saturday.
The US dollar was lifted by a better payrolls report last Friday although it still ended lower for the week having registered its longest fall in a decade. The dollar was a little steadier on the Japanese yen at 106.03, well above the recent low of 104.17 but facing stiff resistance at 106.46 although volumes are light due to Mountain Day holiday in Japan. The British pound recovered some of Friday’s losses after promising developments on trade negotiations with Japan while the AUD backtracked further after a gloomy economy forecast from the central bank.
Australia recorded its biggest one-day rise in COVID-19 deaths although a slowdown in new cases gave hope that a second wave of new infections in the state of Victoria may have peaked. Coronavirus restrictions have devastated Australia’s economy with unemployment expected to peak at 14% this year and recession hitting for the first time in nearly three decades. The government last week pledged to expand its wage subsidy scheme by A$16.8 billion. Prime Minister Scott Morrison has extended his lead as the country’s most preferred leader having bounced back from the lows it hit over his handling of bush fires late last year. His government’s coronavirus wage subsidy scheme and efforts to contain the spread of the pandemic have increased his popularity to a high of 68%. Meanwhile RBA, Australia’s central bank, downgraded its outlook for the national economy on Friday and warned unemployment would stay high for several years.
Japan and Britain agreed to lift auto tariffs for a post-Brexit trade agreement in 2026 despite Japan’s push to lift the tariffs earlier. Japanese Foreign Minister Toshimitsu Motegi is currently in negotiations with British Trade Minister Liz Truss in London and both have announced they will agree on the main principles by the end of August. Auto tariffs and agricultural products have proven to be a sticking point in the negotiations.
