Does the RBA really want a lower Aussie dollar?

The Reserve Bank has just been presented with the perfect opportunity to again talk the Australian dollar down. But inflationary pressures arising from a lower dollar could be a bigger concern.

With the Aussie dollar having traded at its highest level in 2014 overnight the RBA has the perfect opportunity this week to try and talk it down again. I will be interested to see if they will or instead allow it to pass by without comment on the currency. Central bank officials, namely Governor Glenn Stevens and Deputy Governor Philip Lowe are both scheduled to speak this week, and with the dollar at elevated levels it seems an ideal time.

The absence of comment however would be akin to acknowledgement that they may have lost the battle to talk it down or, more likely, they are now concerned about higher import prices adding to inflationary pressures.

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