By RBA making our rates the highest in the industrialised world the AUD has become a gold proxy.
Over investment in our dollar is causing all sorts of inflationary issues here and elsewhere.
I know higher rates are used to curb inflation but in this case wouldn't cutting the rates by 2 to 3% induce a sell off and actually cut our dollar down which would be very necessary right now?
I think its a false impression that there is a 'commodity boom' right now. It's just our RBA's old way of dealing with home grown stimulated inflation that has made our dollar overvlaued and commodities seem very expensive.
