Australia has defied international trends to record a 0.4 per cent rise in gross domestic product for the first quarter compared to the same period last year, with economic growth salvaged by strong exports, robust retail sales and the government’s fiscal stimulus measures.

Exports of iron ore and coal are big earners

The news sent the Australian dollar as much as 2.5 per cent higher to US$0.8264, a new eight-month high, while the S&P/ASX 200 index closed up 1.6 per cent at 4,017.2