Nursery,even if that were the case, the companies in question...

Nursery,
even if that were the case, the companies in question would requite the funds back into AUD at some point....thereby increasing the demand and therefore the price of AUD.
These are Aussie companies we're talking about. Sooner or later the money comes to shareholders and banks in AUD.


If gold is being sold at the spot price of $900USD and the exchange rate is .70AUD/1.00USD then the AUD return to the miner is $1285AUD. If the cost of production is $500AUD/ounce then the profit is $785AUD.
If the exchange rate changes to .80AUD/1.00USD and the price of gold remains unchanged then the profit is $625AUD/ounce, but as the exchange rate improves the cost of gold goes down. So .80AUD/1.00USD, gold $850USD, profit $562AUD.
Must also take into account that the cost of production will also start to raise as any equipment/materials bought into the country will cost more. This will further reduce the profit.
Less profit means less money comes to shareholders and banks in AUD......well less to shareholders at anyrate.


CT
Correct. Good ol' Macro. Yep if more countries are buying our metals, it means more AUD being taken out of the money market by countries wishing to purchase our metals. Less supply of AUD in money market, means value of AUD goes up!
Cheers

They buy in USD.