By TraderVox.com
Tradervox (Dublin) – Despite the poor performance of the Australian dollar in the foreign exchange market, the country’s economy has continued to do well expanding by 4.3 percent in the first quarter. Government reports are also showing that the country added 38,900 jobs in May despite the poor performance of the country during that month.
The Aussie has been affected by the euro area crisis which dampened demand for riskier assets for the currency to drop sharply. However, there has been several technical analysts who have held that the drop was excessive considering fundamentals, and technical indicators. Australia’s Treasurer Wayne Swan is expected to address a conference this week on challenges facing the economy.
Australia’s economy is one of the fastest growing economies among the developed countries; which is driven by resources in the north and west. There has been numerous challenges affecting the economy forcing the Reserve Bank of Australia to cut interest rate by 0.25 percent to spur growth. Australian Prime Minister Julia Gillard will address a two-day Economic Conference to be held in Brisbane starting tomorrow. She is expected to touch on economic progress in the country as well as some of the problems that are facing the nation.
Signs of worsening euro zone debt crisis have already been seen with Spain becoming the fourth country to seek international bailout. Earlier, the announcement had sparked riskier asset demand as investors consider this as a positive step towards solving the debt crisis but this has been limited by the fear that the crisis might be getting a firmer grip on the region’s economy. The Australian dollar has increased by 2.2 percent against the US currency in the last seven days making a 41 percent increase since the 2009. The Economic Forum to be held tomorrow is aimed at enhancing consuming confidence which has dropped considerably in May.
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