The Australian dollar fell 2.5% in the past two days

Updated on 17 January 2014, 10:56 AEST

Global stock markets are rising again, and the World Bank predicts that the global economy seems to have emerged from the gloom. At the same time, the Australian dollar fell 2.5% in the past two days. Australia’s unemployment rate showed its worst results in 12 years in December.

On Wall Street in the US, the Dow Jones Index closed down 0.4%. The Quasi & Poor's 500 Index fell back after setting a new high on the previous trading day, down 0.1%. The Nazdaq index closed up 0.1%. In Europe, the German DAX index fell nearly 0.2%. The French CAC index closed down 0.3%. The Financial Times 100 Index fell slightly by 4 points to close at 6815 points.

In Asia, Hong Kong stocks closed up 0.37%. The Shanghai and Shenzhen stock markets closed little changed. The Shanghai Composite Index closed up less than 1 point. The Shenzhen Composite Index closed down 1 point. On the other side of the Taiwan Strait, the Taiwan Weighted Index closed slightly up 0.11%. The Japanese stock market fell slightly at the close, and the Nikkei index fell 0.39%. The Seoul Composite Securities Index in South Korea rose to a one-week high, an increase of 0.2%.

In Australia, driven by mining stocks, the Australian stock market rose. The All Ordinaries index rose 34 points and closed at 5289. The ASX200 index rose by 0.6% to 5279. This is the biggest one-day increase so far in 2014.

The World Bank predicts that the global economy has come out of the gloom. The organization's latest outlook report pointed out that five years after the onset of the global financial crisis, the US and European economies led the global economic recovery, while the Chinese economy continued to develop strongly. This outlook report also pointed out that China's economic restructuring and the United States' economic stimulus policies will bring risks to the global economy.

In terms of the exchange rate of the Australian dollar, at 7 o'clock in the Australian Eastern Summer Time this morning, the exchange rate between the Australian dollar and the US dollar reached 1 Australian dollar to 0.8815 US dollars. In yesterday's transaction, the Australian dollar fell below US$2010 for the first time since mid-0.88. In the past two days, the US dollar index has risen by 0.5%, while the Australian dollar has fallen by 2.5%. Therefore, this shows that most of the reasons for the decline of the Australian dollar were not caused by the appreciation of the US dollar.

Let's take a look at the Australian unemployment rate published by the Australian Bureau of Statistics. The number of new jobs created in Australia in December was the lowest in 12 years. Employment positions decreased by 17. This brings the unemployment rate to 22600%. This is comparable to the unemployment rate after the outbreak of the global financial crisis.

However, the employment participation rate in Australia has not decreased. The unemployment rate is the number of people who cannot find workers divided by those who want to find workers, and the employment participation rate is the number of people who want to find the public divided by those who can work. This number has declined mainly because some people were forced or voluntarily to retire early.

In terms of commodity prices, gold prices stabilized after two consecutive declines. New York gold futures closed at US$1240.2 per ounce, an increase of US$1.9, or 0.2%. The decline in oil prices, the market expects that Libya and Iran's crude oil supply will increase, offset the Organization of Petroleum Exporting Countries said that the daily output of crude oil of member countries will decrease by 2 barrels to 2944 million barrels. New York oil futures closed at $93.96 a barrel, down 21 cents. London Brent oil futures closed at US$107.09, a slight drop of 4 cents.