Hmmm. What I think is that you need to find a relationship first between movements in Australia's terms of trade and the current account for say... the last 20 years to establish a pattern between the two. My school actually gives us copies of an out-of-print book from the old syllabus that has graphs comparing terms of trade to the current account from 1981-1992. Unfortunately, my scanner isn't working otherwise I'ld scan it in for you, but in case you find some way of getting your hands on it - it's called 'Introducting Economics - Book 2' by Barry Collier.
That's all I can find at the moment in the way of statistics... But after finding the relationship, point out the trends (eg. that any deterioration in the terms of trade has been accompanied by an increase in the size of the current account deficit as a proportion of GDP and vice versa.)
I don't think the question merits any more discussion than this, but if I wanted to go into more indepth discussion, I would look at the last 5 years and find factors that have influenced the relationship. eg. Australia's insistent export diversification into ETMs which are more income elastic than the agricultural exports, which historically dominant Australia's export base, has somewhat eased the effects of a deteriorating terms of trade on the current account. (I think.
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