The RBA’s account of the 2005–11 boom explains a relative-price measure. Higher commodity prices and larger physical exports are distinct channels.
What the primary record establishes
The Reserve Bank of Australia defines the terms of trade as the ratio of export prices to import prices. Its historical explainer discusses the 2005–11 boom, when stronger global commodity demand met limited near-term supply. These are historical observations, not an October 2026 release. Reserve Bank of Australia — Australia and the Global Economy ↗
The RBA describes how higher commodity prices supported mining income and investment, and how the exchange rate helped the economy adjust as conditions changed. The account distinguishes price movements from the later expansion of production capacity. Reserve Bank of Australia — Australia and the Global Economy ↗
What the distinction changes
In an illustrative index calculation, export prices rising from 100 to 120 while import prices rise from 100 to 110 increase the ratio by about 9.09%. The change does not require a 20% increase in tonnes shipped, nor does it measure the trade balance.
An improved ratio means a given quantity of exports can purchase more imports, other things equal. It does not establish how the income is distributed, whether export volumes fell, or how foreign investors value Australian assets. Those questions require additional evidence.
What to check before drawing a conclusion
For an AUD briefing, identify whether the news concerns prices, volumes, investment or interest-rate expectations. A commodity-price headline may contribute to a currency explanation, but translating it into a guaranteed percentage move in AUD would overstate the source.
Retain the index base, observation quarter and revision vintage. Compare export and import price measures from compatible sources. Check the actual trade-volume and national-accounts releases separately before describing a price improvement as stronger real output.