Thanks to the US stock market and a resilient Australian job economy the Aussie dollar continues to strengthen. US stocks received a boost from reports which demonstrated economic stability would not weaken.
Following the jump in US stocks, which dramatically climbed to over 2.3%, the Australian sharemarket boasted over 1% in growth with the Aussie dollar registering above 0.99 cents (US).
This is awesome news for travellers as their Aussie dollar will go along way while visiting other countries.
Last Friday, the Dow Jones index suffered its worst loss since the beginning of the year. Shareholders and investors are now diving back into the sharemarket and the world economy after stocks began to rise.
According to the Australian Bureau of Statistics (ABS), 38,900 people found work in the month of May. Even though the unemployment rate rose slightly from 0.1% to 5.1%, Economic Specialists had already anticipated as much. The rise in unemployment numbers didn’t stop the Aussie dollar growing however, surging to $0.99.59 cents (US) after the growth in Aussie job numbers were released.
Reports also show European Union (EU) heads are expected to maintain Spain’s suffering banking structure which upon hearing this information, also contributed to the rise in Aussie dollar value. In addition, domestic growth numbers released for Australia also contributed to the Aussie dollar value, with Australia’s Growth Domestic Product (GDP) increasing by 1.3%.
Globally, many markets surged following reports that European Central Bank is continuing its fluent and infinite credit advances for European banks, for the most part, throughout 2012.
Carly Pickering, OxForex Strategist, says that the Aussie dollar has shown “quite a rally”, since, at one point, it was trading at a low level of 0.96.40 cents (US). Pickering advised we may see more of a fluctuation for the next few months:
“That’s not to say we won’t poke our head above parity… Levels of parity and slightly above aren’t out of the question but they’re going to be in weeks when stars are aligning.”