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The Australian dollar today reached a nine month high of 77 US cents. This is mainly attributed to the strengthening global equity markets and commodity prices. Last night crude oil rose 3%, iron ore reached $US60 per tonne and gold realized its highest quarterly gain in three decades.
Indeed, following a business survey, NAB said yesterday that there is “strong evidence that the Australian business environment has not only weathered global uncertainties, but appears to have strengthened.”
Although the rise in the dollar is not entirely thanks to anything Australia has done, it’s still a good sign for those looking to travel soon.
However, it seems that Australians are pessimistic about the rise. The latest Index of Consumer Sentiment has shown a 4% fall in consumer confidence. It is speculated that this is due to the effect a higher Australian dollar will have on exports, as well as the 9.2% slump in the “time to buy a house” index.
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