Looking at Australia, there's a puzzle unfolding over the last 18 months. While the terms of trade, which is like the value of goods they exchange with other countries, have been easing a bit, they're still better than usual. However, the Australian Dollar's value, when compared to other countries' money (called the trade-weighted index or TWI), seems stuck in a range of 60 to 65 for a surprisingly long time. This conundrum becomes clearer when we break it down: 1. Tricky Trade Numbers: Think of a seesaw – one side shows that the terms of trade are gradually becoming less favourable, but on the other side, it's still ... (full story)