According to this report in the WSJ, “Australian Dollar’s Tumble Brings Some Relief”:
The Australian dollar’s tumble to a seven-month low is likely to be quietly welcomed by country’s central bank, which had been running short of ideas about how to rev up the flagging economy.
Don´t all non-Australians wish their own economy were “flagging” just like Australia´s?
The two charts illustrate.
The Australian dollar dances according to the music set by commodity prices. A notable exception is the period from mid-2011 to mid-2013 when, while commodity prices dropped the A$ stayed put.
As you can see from the NGDP & Trend chart, that´s exactly the period during which monetary policy was tightened to bring spending back to trend. When that happened exchange rates and commodity prices resumed their “cheek-to-cheek”!