china and the rest of the world buys their goods in US dollars....

china and the rest of the world buys their goods in US dollars. Generally speaking when the USD tanks/AUD rallies, the prices of commodities go with it. Generally keeping pace with the increase in currencies, plus some on top. The net effect is increasing commodity prices in $A over the longer term, albeit it slower then the increase in price in USD terms. Price of gold stocks should in theory follow the price of gold, irrespective of the world economies. The cost of fuel increases is negligible to EXS.