Reserve Bank of Australia (RBA) Kent: Australian dollar remains high given decline in commodity prices

Christopher Kent, Assistant Governor (Economic) speaking at the Bloomberg Economic Summit in Sydney:

• AUD remains high given decline in commodity prices
• Says further AUD decline would support local firms
• Low rates, population growth underpin strong housing
• Says house prices rising rapidly
• Says further fall in currency would boost local firms
• Companies say finance cost, availability not curbing investment
• High exchange rate might be restraining investment
• Non-mining business investment to grow modestly this financial year

Full text: Non-mining Business Investment – Where to from here?

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We’ve already had a good few comments from there already this morning:

• Wespac global FX head – Australian iron ore exports to China are still strong
• JP Morgan – China story still positive for Australia
• Goldman Sachs Asset Management’s Phil Moffitt: Sees Australian dollar at about 85 cents in 6 months
• JP Morgan’s Auld – Sees AUD at about 90 cent in 6 months