The Australian dollar s recent rally is causing analysts to describe it as being at the vanguard of a global recovery .
According to this Bloomberg report, the AUD s recent upswing is an indicator of optimism among analysts that economies worldwide are recovering.
The Aussie dollar has risen 21% since Feb 25, the fastest gain since it began freely trading in 1983. It s tipped to outpace all other top currencies.
The good signs:
- retail sales and export figures jumped in March
- jobless numbers dropped in April
- the continuing growth in India and China will secure a demand for our commodities
- Australia s recession is considered shallow compared to those of the other G-10 economies
On the other hand:
- some analysts feel the AUD s rally doesn t have staying power
- investors may turn instead to emerging markets with higher interest rates, such as Brazil and South Africa
Source: Market Analyser Click here for a free trial.
To get the details in the Bloomberg article, click here.
