Architects of the float of Australia’s dollar, trading at a similar level to when exchange controls were lifted 30 years ago, say the currency must devalue and economic reform be renewed to avert a recession.
Signs Australia’s economic expansion is spreading from the mining industry to households boosted the case for the nation’s central bank to resume the Group of 20’s most aggressive round of interest-rate increases.
Travis Marks, a 24-year-old with no college degree, is hitting pay dirt as Australia’s mining bonanza fuels demand for workers. Already making triple the nation’s average salary, he expects to get even richer.
Australian exports excluding farm goods surged by the most in almost three decades in April as shipments of iron ore and coal to China pushed the trade balance to a surplus for the first time in 12 months.
New Zealand’s currency slid to the lowest since December against the U.S. dollar after a magnitude 6.3 earthquake killed at least 65 people and toppled buildings in Christchurch, the nation’s second-largest city.
Australia’s government will end 23 years of spending growth to ease inflation from the biggest mining-investment boom in the nation’s history and plans measures to help companies hurt by a record-high currency.
Reserve Bank of Australia Governor Glenn Stevens, with a pay level set more than four times that of Ben S. Bernanke at the Federal Reserve, oversees a bank that’s less transparent than Poland’s in setting policy.