Question

why the Australian dollar has remained high even those commodity prices have fallen?

Answer 1

Hello,

The Australian dollar has remained high, simply because the Reserve Bank of Australia values it to be high; the Australian dollar should be valued to the low US80¢ area, as with how commodity prices have fallen. People believe that the RBA is trying to add additional stimulus to the currency, however in reality it is just offsetting the restraints of low commodity prices.

Peace.

Answer 2

Thank you