Australian PM Morrison announces USD13.4 billion infrastructure boost ahead of May election

Key takeaways

The package includes an additional 3.1 billion Australian dollars (2.3 billion dollars) for the Melbourne Intermodal Terminal for new freight terminals to service inland rail routes, AUD2.2 billion (USD1.6 billion) for South Australia's north-south motorway corridor and AUD2.8 billion (USD2.1 billion) for rail extension and upgrade in the state of Queensland.

The funding would keep Australians moving and create thousands of new jobs.

Meanwhile, the countrys Treasurer Josh Frydenberg said, “With the unemployment rate already at an equal 48 year low, the measures in this budget will create an additional 40,000 jobs across Australia, building on our world-leading economic recovery.”

“By enhancing transport connectivity, we're strengthening our supply chains against challenges such as COVID-related disruptions and the impact of natural disasters,” he added.

Market reaction

AUD/USD has erased losses to now trade better bid at 0.7513, as risk sentiment improves slightly while the aussie ignores the dismal Australian NAB quarterly business survey.