Even though there are signs the boom is getting a bit tired, the latest Commodity price Index from the Reserve Bank shows that prices remain solid, even after the strength in the US dollar.
The RBA’s price index for November shows a preliminary 0.5% fall in Australian dollar terms.
In terms of Special drawing Rights (The ‘currency’ of central banks) there was an increase of 0.9% for the month, after a fall of 0.1% in October.
"The largest contributor to the rise in November was an increase in the price of gold," the RBA said.
"An increase in the estimated price of coal also contributed to the rise, reflecting the strong performance of spot prices in the month, as did an increase in the price of wool.
"The estimated price of iron ore fell in the month, reflecting further movement towards lower contract prices for the December quarter which offset strength in the spot market.
"Over the past year, the index has risen by 44 per cent in SDR terms.
"Much of this rise has been due to increases in iron ore, coking coal and thermal coal export prices, although all components of the index except milk powder prices increased over this period.
"With the appreciation of the exchange rate over the year, the index rose by 31 per cent in Australian dollar terms,” the bank said.
The fall in Australian dollar terms includes the small drop in the value of the Aussie dollar against the US dollar in the last fortnight of November.
The dollar is now around 96 USc, down almost 5% from its peak above parity with the greenback.
