Technically speaking…Australia is not yet in a recession.
Australia’s GDP rose 0.4% in the 1st quarter of 2009 – a strong, strong performance turned in from the Land Down Under…especially as the other major economies in the world continue to circle the bowl.
As long as China’s recovery continues – and that could be a big IF once China slows down on the stimulus spending – the Australian economy should benefit. But China’s still got a couple bucks in the bank – give or take a few trillion – so right now it’s “game on” for the tag team of China and Australia.
And as we discussed earlier today, these factors will continue to underpin this rally in the Australian dollar as well.