Two recent RBA research papers to note: Exchange Rate Movements, and Economic Activity and Australia after the Terms of Trade Boom. The RBA finds that temporary 10% depreciation of the exchange rate has only muted effects but a permanent 10% real depreciation is estimated to increase the level of GDP by around 1% after two to three years. So far the real exchange rate has fallen 8.5% of some assistance to growth but in time and while the dampening effects of a protracted period of appreciation are still present.
Read the full report: FX Research
NAB