Clearly other issues are also at play when it comes to working out fair value for a currency and that includes the Aussie dollar.
Which means that the housing issue is more important, at least in my mind. House prices are heavily influenced by the borrowing capacity of borrowers which in turn is heavily influenced by the interest rate paid of any mortgage taken out by that borrower.
This means, quite simply, that higher interest rates will nip away at borrowing capacity, the risk assessment of new lenders by the mortgage providers, and as a result, house price growth will lose momentum as interest rates rise.
Which goes all the way back to the RBA policy priority at the moment, in thinking it can hold the Aussie dollar down by leaving interest rates rate on hold and that this is more desirable than hiking rates, risking a higher Aussie, but shooting a bit of buckshot at the possible housing bubble.
For the sake of the longer run well-being of the economy, let's hope the RBA changes its priorities and tweaks interest rates higher sooner rather than later.
The next RBA meeting is scheduled for 6 May and that might be a good time to start.