The Australian dollar is hitting a two-year high and the Australian dollar-denominated S&P/ASX 200 index is up 0.6 percent in Sydney.
That puts the nation’s stock markets under pressure to slow the rise of the US dollar as a global benchmark, and has made many investors and analysts fearful of the potential for a stock market correction.
A dollar-earning country like Australia, with the world’s largest economy, should be a great place to invest.
It also helps that the country has a low cost of living.
But Australia’s stock market has hit a wall.
As the dollar rises, investors are taking a more risk-averse stance.
But the Australian economy has struggled for years.
The country’s GDP shrank by 0.3 percent in the second quarter of 2018, according to the Bureau of Statistics.
It’s also one of the worst performers in the G7 group of advanced economies.
In the past decade, the economy has been growing less than 2 percent per year.
And its unemployment rate is now above 14 percent, the highest in the world.
This has led many to question the wisdom of the country’s policy of fiscal stimulus.
The Australian economy is expected to shrink 1.5 percent in 2019.
That’s below the Bank of England’s target of 2 percent growth.
The economy is also expected to contract by 1.7 percent in 2020, according a recent report by the Commonwealth Bank.
That would leave the country in a hole of almost $1 trillion, according the Commonwealth’s chief economist.
The last time the Australian stock market had a hard time recovering from a currency depreciation, it was in 2010.
The move to a weaker Australian dollar has put pressure on the country to find more growth and lower inflation.
The Reserve Bank of Australia said last week it would cut interest rates from a near-zero level to 0.25 percent this year.
That might seem like a great time to buy Australian shares, but it could be a dangerous time to trade them.
The U.S. dollar has been on a tear for more than a year.
It is trading at around $1.1535, up about 20 percent from last year, and up more than 70 percent from its peak in July 2015.
Australia’s share of the U.K. pound is down to 0 percent from 1.16 percent a year ago.
And the Australian government has announced it will be raising the minimum wage to $15 an hour.
The government has been trying to stimulate the economy since the government announced a $1 billion stimulus package in 2015.
But so far, the stimulus has been little more than tokenism.
And while the Australian currency has soared, the country is still not doing as well as the U