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Punishment, I'm no FA expert but the AUDUSD exchange rate depends on several factors, only one of which is the AU vs US central bank cash rate. Why are you interested in seeing the AUDUSD rate go higher? There are many reasons why it is better if the rate is lower and only a few if it is higher.
If RBA increases its cash rate prematurely it will suppress economic investment so economic and therefore employment growth here will slow. Also, if the RBA raises rates it will increase home loan rates which is a higher burden on mortgage holders.
If our dollar remains low our country is more competitive against overseas competitors. Also our commodity producers are more profiable because most commodities are priced in US dollars.
The main benefit of a high AU dollar is if we want to buy imported goods (from the US) and if we want to travel (to the US). Since many goods are no longer produced in the US a higher AUDUSD rate provides less benefit than it used to, and there are plenty of other places in the world to travel to.
Cheers, Sharks
