Australian dollar remains tied to commodities despite changing economy structure.
The Australian dollar is still influenced by changes in the country's terms of trade, even though its economy has evolved since the 1980s. The relationship between the exchange rate and terms of trade remains strong, showing that Australia is still considered a commodity-based currency. The study looked at how different factors affect this relationship and found that despite changes in the economy, the exchange rate still responds to changes in the terms of trade.