Dollar Rises, Boosts Investor Confidence

The Australian dollar soared at the stock market Tuesday closing at 99.34 US cents. It also posted its best record in the last six months amidst reports that the global economy is actually slowing down. 

Job figures for May apparently helped boost the dollar. Full-time jobs have increased in the last year and a half, and rate expectations for March have risen to figures that were more than what was projected by analysts.

 The market has also experienced a winning streak for the last five weeks, with the share index rising at 1.1 percent.

Other countries, experts say, would envy these numbers.

Similarly, Wall Street also had their best day Tuesday, and some of Europe’s stock markets had significant gains. 

Investors are apparently confident that central banks in many countries are aware of the vulnerabilities of the global economy and that something is being done about this. The European Central Bank is, in fact, on standby, in case Spain’s bank woes worsen. 

Additionally, central banks have not changes rates, which greatly helped with investor’s confidence.  And with low valuations, some investors have really taken advantage. 

Meanwhile, the Australian economy is considerably doing better, with its GDP rising to 4.3 percent for the first quarter of 2012. Economists have earlier predicted the pace to be at 1.3 percent only. 

Analysts warn, however, that the second quarter numbers will not be as great as this, seeing that the debt crisis in Europe has escalated, affecting even the economy of China and the US.