Australia has some of highest interest rates around, according to one writer.
Currencies are similar to term deposits in that money should flow into the best offering, according to one industry expert.
David Potts, writing for the Age, noted that possibly there should be some kind of Aussie credit awarded for the country as its interest rates are "some of the highest around".
He said one way to tell which direction the Australian dollar should be going is by comparing costs of items to buy in the nation with others.
Mr Potts added: "If it's cheaper here, the chances are the dollar is overvalued and vice-versa if it's dearer."
But according to the piece, CommSec chief economist Craig James believes the dollar is too high, after comparing the price of the Apple iPad because Australia is the third-cheapest for the gadget, behind the US and Canada.
This news comes after the Reserve Bank of Australia decided to maintain the interest rate at 4.5 per cent on Tuesday (August 3rd).
By Joe Letts
