The Reserve Bank of Australia (RBA) governor Glenn Stevens said in a speech in Melbourne on Friday that while interest rate is expected to be hiked in the U.S., interest rate in Australia it is expected to be cut. He noted that interest rate hike in the U.S. will bring turbulence in asset and financial markets.

Stevens thinks that the Australian dollar is likely to depreciate further despite the recent decline.

The RBA governor pointed out that a weaker Australian dollar is assisting the major transition from mining driven growth to other sectors of Australia's economy.

Stevens also said that Australian businesses and households are less optimistic about the future.