Australia confidence up, New Zealand over worst of recession
Australia, which is one of the few developed economies not to have fallen into recession like its counterparts throughout the world, has seen its currency hit the highest level in 12 months after investors are more confident about a global economic recovery.
The Australian dollar rose 0.5% to AU$0.86 against the US dollar. Already this year, the currency is up 21.5%.
The economy has benefited from an increase in commodity prices, while exports have received a boost due to demand from China for its iron ore and other raw materials.
Last week, official figures revealed that the Australian economy exceeded expectations in the April to June period by experiencing growth of 0.6% compared with the previous quarter.
Growth in the second quarter was boosted by a revival in business investment and household consumption.
In the meantime, New Zealand’s Prime Minister John Key, has announced that the economy may be over the worst of its recession and is confident of third quarter growth.
He told reports in Wellington: “We’ll continue to grow more aggressively as the world recovers.”
Dairy exports, which are New Zealand’s second-biggest foreign-currency earner, have soared 55% in the last two months alone.
In the meantime, the New Zealand dollar also gained 0.6% on the back of global economic recovery hopes.
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