Exchange traded funds indexed to Australian stocks and the Australian dollar have rebounded this week on improved risk appetite in global markets.

The iShares MSCI Australia Index Fund (NYSEArca: EWA) is up nearly 11% over the past week.

“The Australian economy has rebalanced away from a credit-driven property and consumption boom toward more modest consumption, strong exports and investment,” Adam Carr, senior economist in Sydney at ICAP Australia Ltd., said on Bloomberg.

Australia business investment within the mining industry was the highest in the third quarter in over 15 years. As mining companies are ramping up investment in equipment and production, the country has also received the top credit rating possible from Fitch.

Capital spending in the third quarter was up 12.3%, the highest since second quarter of 2006, according to the Bureau of Statistics in Sydney. Mining companies such as BHP Billiton Ltd. are hiring workers to step up production in natural gas, iron ore and coal for China and India, reports Michael Heath for Bloomberg.

The Australian dollar is closely watched by investors as a risk gauge as the currency is sensitive to commodities. It fell during most of November on Eurozone debt worries before the sharp rebound. [Aussie ETF Rebounds From Down Under]

CurrencyShares Australian Dollar Trust (NYSEArca: FXA) has rallied 5.5% over the past five sessions. [ETF Spotlight: Australian Dollar]

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