Investigation of directional and functional relationships of Australian dollar exchange rate, steam coal export and steam coal price

The interesting finding in this paper is that the Australian coal exporters loss which occurs due to a strong A$ is less than the profit from increasingly higher prices of Australian steam coal and for this reason, Australian steam coal exporters choose to export more when the price is high. The empirical results of this analysis confirm that for each one cent increase in Australian dollar value against the US$, the Australian steam coal price increases by 0.8182 US$ and additional each one million tonnes export of Australian steam coal, the Australian steam coal price increases by 1.752 US$.