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With the failures to reach on any agreement over the much-awaited coronavirus (COVID-19) aid package, US policymakers pushed back the voting on the stimulus bill. Despite the initial promising talks between House Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin, the 90-minutes talks failed to break the deadlock over key issues.

Key notes

The House Democrats aimed for $2.2 trillion before calling off the scheduled vote to at least Thursday.

Majority leader Mitch McConnell is against the bill while both the key parties are on the same grounds concerning direct payments, small business loans and airline aid.

Disputes are likely hovering around the state and local government stimulus as well as liability insurance for businesses.

FX implications

Even if AUD/USD dropped to 0.7155 as the news broke, the second readings flashed hidden optimism for a deal, which in turn helped the risk barometer to regain 0.7165 by the early Thursday morning in Asia.