Australia exports a lot of gold & mineral resources & hence is a commodity currency.
As such the currency rises when gold rises & falls when gold falls as can be seen in the following chart.
In the next chart we can see that since August & the latest bottom in gold that the relationship has reversed.
Gold has risen $USD60 & the AUD has fallen 4 cents whilst AUD Gold has risen $140
This is due to Australia falling into a slump with China’s exports falling & the current account deficit rising as we fall into a recession.
Good for those holding gold in Australia.