Australian banks announce $57 billion loan relief package for businesses

Australia Banking Association Chief Anna Bligh announced on Friday, they would defer loan repayments for six months for small businesses impacted by the coronavirus in an A$100 billion ($57.34 billion) relief package, as cited by Reuters.

Key quotes

These are extraordinary times.

Australia’s banking system was among the strongest and the most stable in the world.

And they (banks) stand ready, open for business, open to lend to those businesses that may need that.

• Moody's: Australia's coordinated coronavirus response for banks is credit positive
• Australian Treasurer Frydenberg: Financial system remains strong

AUD/USD reaction

AUD/USD is consolidating the sharp recovery above 0.5800 despite PBOC's reluctance to cut rates. Record Fed balance sheet, signs of risk recovery and broad US dollar correction from three-year high is boding well for the Aussie.