Australian PM Morrison: Reopening of state borders will support jobs growth

In an interview with 2GB radio on Monday, Australian Prime Minister (PM) Scott Morrison sounded upbeat on the reopening up of the state borders in the country despite the alarming rise in the coronavirus outbreak in the no. 2 populous state of Victoria.

Key quotes

“There’s no reason [why] we can’t go ahead with these openings.”

“They should go ahead – it’s costing jobs in those states.”

On extension of the AUD60 billion wage subsidy scheme beyond end-September, “It can’t be sustained forever,” adding that “another phase of stimulus at the end of September would be targeted to the people who need it most.”

This comes as South Australia and Tasmania states have in recent days confirmed their borders will reopen in late July. Queensland state expected to announce similar later on Monday.

Market reaction

The aussie dollar is extending its bounce against the greenback in Asia this Monday, now adding 0.37% to 0.6885.

The sentiment around the AUD remains underpinned by fresh Chinese vaccine development news that has outweighed the discouraging Australian virus stats.