Reserve Bank of Australia (RBA) Index of Commodity Prices y/y

Reserve Bank of Australia (RBA) Index of Commodity Prices y/y measures the weighted average change in commodity prices, in the reported month compared to the same month of the previous year.

Each of the values used for the index calculation is given a certain weight, which reflects its importance in the total export volume for the base period. Weights of various commodity items are updated annually and calculated based on export values ​​for the previous two fiscal years. The current base period is set to 2011/2012; the index benchmark for that years is equal to 100.

The current list includes more than 20 goods exported by Australia, which account for about 90% of the country's export earnings. The Reserve Bank of Australia regularly revises the index components to ensure that it reflects all the main positions. The list is revised approximately every five years. The calculations are based on the weighted average values of contract and spot prices provided by the Australian Bureau of Statistics.

Australia has an export-type economy. Its development largely depends on export prices for primary commodities, from iron ore to food (meat, milk, plant products). Price change can have a significant impact on cash flows and economic activity in the country. Therefore, the commodity index growth can have a positive effect on the Australian dollar quotes.