The head of the Reserve Bank says the Australian dollar is still too high.
"I personally would continue to think that a lower currency would be helpful in rebalancing the growth of the economy," RBA governor Glenn Stevens said.
"If it warrants a response we will do it."
The high Australian dollar makes imports cheaper, making it more difficult for local businesses to compete with overseas rivals.
It also weakens the competitiveness of local exporters.
"I don't think you could really credibly say that the levels of costs and productivity in Australia, I don't think those things would point you to ... present levels as being sustainable," Mr Stevens said.
The Australian dollar has been below parity with the US dollar since April, after spending the best part of two years above $US1.
The local currency fell as the US dollar strengthened on expectations the US Federal Reserve would scale back its economic stimulus measures.
The Australian dollar is now over 96 US cents after rallying since the US Congress failed to passed a budget, causing most government departments to shut down for two weeks.
Mr Stevens said the US government shutdown means the US Federal Reserve is unlikely to taper its bond purchases in the short term.
"So we've has some reversal in the decline in our exchange rate," he said.
"It should be added as well that we've had more positive data from China than some people expected and that's the thing that gives it a bit of a bid."
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