In the past - MIM used to be frequently quoted , often used their reference :
“Anything less than 74c , is Good (for exporters)” - to hedge the currency exchange rate for forward pricing stability and generally favourably enhanced final AUD price when commodity sales actually occurred .
ie. 73-74 c ~ Was the ‘average’ rate , for AUD over many years .
The pendulum could swing often above and below this AUD rate .
**But historically- 74c , was ‘average ‘ AUD rate , below which they regarded as being more favourable for exporters . (This the Mt Isa Mines paradigm anyway - but was adopted as useful generalisation by many others , when seeking to manage or consider AUD impact on final prices )
AUD - is also proxy traded as the - ‘Commodity dollar ‘ . ( as Australian Trade more dominated by resources exports , plus Australia and the AUD is a ‘safe ‘ currency and jurisdiction . Eg. compared to say Brazil . Also not prone to major event driven currency effects either - natural disasters with overall impact , nor is politically unstable )
When commodities rally, base commodities, enhanced by Aust being large primary production exporter also , and Gold strengthens - AUD generally is bought by traders .
( eg . Overnight , I have not checked , but apparently gold moved up , at first ? . The AUD rate also has gone up ? Therefore this balances out - the commodity/gold price gains ).
All the best AvJ
