We can trace out the sources of the additional demand in terms of the three overlapping phases of the resources boom as follows: (i)  During the first phase – the boom in the terms of trade – we see a price effect. Higher commodity prices lead to more export revenue.
Part of this revenue accrues as profits to Australian owners of existing resource and resource-related companies, wages for workers at these companies and taxes for Australian state and federal governments. Also, foreigners wanting to buy existing Australian resource assets add to the demand for Australian dollars for a time.