Impacts of Australian Commodity Exports and Commodity Terms of Trade on the Australian Dollar 1997–2017

This thesis find evidence of a strong positive relationship of the Australian and U.S. Dollar exchange rate with the Australian commodity terms of trades, and the price of three of Australia's five largest export commodities, namely iron ore, aluminum and coal over the span of the last twenty years. As one of the world's largest exporting nations, this information has useful policy implications for central banks who need long-term evidence to decide monetary policy. It is also highly beneficial for importers and exporters who need to make informed decisions regarding future shifts in the exchange rate to manage their cash flows.