Amazingly, the Australian dollar continues to show strength, trading today at a four-week high of 93.74 US cents.
The robust showing from the dollar reflects new data that shows business confidence has remained steady in May, after taking a hit on the release of the federal budget.
Senior client adviser Stuart Ive from OM Financial told the Herald Sun the recent positive economic data is encouraging people to take more risks when investing in assets.
“The real underlying theme with the Aussie dollar is this global surge for yields, we’ve seen the US data improve and we’ve had better data from China,” he said.
“Most commodity currencies have edged higher, we’ve also seen the iron ore price recover a fraction.”
The Aussie dollar also hit a six-month high against the euro of 69.25 euro cents.
The strong showing against the euro is mainly attributed to recent policies from the European Central Bank (ECB) that are designed to stimulate their economies.
While the RBA has repeatedly stated it would be happy to see the Australian dollar trade somewhere in the mid 80s to help balance the economy and take pressure off low interest rates, Mr Ive said he expects the dollar to continue to trade between 93 and 94 cents for the rest of the week.