About شروط التبادل التجاري (AUD)
Australia's terms of trade index measures the ratio of export prices to import prices. An improving terms of trade means exports are becoming relatively more valuable compared to imports.
Why FX traders watch it
For commodity-exporting economies (Australia, Canada, New Zealand), rising commodity prices improve the terms of trade and support the aud. Falling terms of trade erode export revenue and can weaken the aud.
How to interpret the data
Rising terms of trade is aud-positive as it implies more import purchasing power per unit of exports. Deteriorating terms of trade, such as when commodity prices fall while import costs rise, is a headwind for the aud.