FXStreet (Guatemala) - Paul Bloxham, Chief Economist, Australia and New Zealand at HSBC explained that for the past two years, the RBA has been vocal about its desire to see the AUD fall.

Key Quotes:

"Its view had been that without a lower AUD Australia’s economy would struggle to return to a balanced growth path."

"The stubbornly high AUD had clearly been the key factor that was holding back of the pace of rebalancing. But, having fallen by 15% on a trade-weighted basis over the past year, the AUD is now at a level where it appears to be supporting the rebalancing of growth."

"One way to assess this is to look at models of the currency. The most successful models for the AUD typically have a large role for the terms of trade (which is the ratio of export prices to import prices and tends to be driven by commodity price developments). With this in mind, the AUD has now fallen to levels broadly in line with the current level of the terms of trade."

"The proof of the pudding is also in the eating, with the lower AUD already lifting activity in a number of trade-exposed sectors. "