The Aussie Dollar is too high, according to a board member of the Reserve Bank of Australia.  John Edwards says the currency risks climbing because central banks are embracing negative interest rates and the US Federal Reserve is postponing rate increases.

The Wall Street Journal reports that Mr. Edwards comments are the first signs in some time of unease on the central bank board over the level of the Australian dollar.  And it comes amid growing speculation that the RBA will lower rates this year to hold down the currency, protecting export performance to support growth.

Mr. Edwards would also like to see the Australian Dollar at US$0.65 instead of the current US$0.7150.  "It does look like it (the Australian dollar) has found a base, and I guess I would say I still think it is a bit too high," Edwards was quoted by the WSJ.  "If it was driven entirely by commodity prices, it certainly should be lower," he added.

The Aussie Dollar is down from the record levels of 2011, and still well below 2014 when it was worth about US$0.80.  But Edwards and others fear that decisions made by other central banks could push it higher.  Japan recently adopted negative interest rates policies, while the European Central Bank looks prepared to announce more stimulus.