The Australian dollar is gaining market confidence . The innate strength of Australia as a resource based economy helps, and there will be structural shifts which are already sending out positive signals for the economy.
Australia's quality emphatic migration policies results in an increase in labor endowment. This will cause an outward shift in the qualitative and skill intensive labour supply . The Aussie production curve could shift positively in favour of labour intensity as a factor of production. An example may be in deepening skill intensity Australian education quality is high. Some of Asia's best universities are in Australia. In an Asian age, Australia serves the as a destination for the Asian elite. Given that the Japanese economy is in throes of another bout of technical recession, the Aussie is a good alternative.
The Chinese are quite fond of Australia and will keep on diversifying their portfolio into Australia with each rise.
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