It seems Australia's terms of trade have reached their highpoint, and now have nowhere to go but down, confirming speculations that the country's economy has lost a bit of steam.

Latest preliminary estimates released by the Reserve Bank of Australia showed the country's index of commodity prices for October dropped 3.9 per cent in terms of special drawing rights, spurred by declines in the estimated export prices of coking coal and iron ore because of weak spot prices and decline in contract prices.

The newest statistics marked the second consecutive drop from a record high in August. Australia's revised September index of commodity prices fell by 1.4 per cent.

Gold and base metals prices, along with prices of most rural commodities, likewise fell in monthly average terms, the RAB reported.

In dollar terms, the Australian index tumbled by 3.2 per cent in October.

The index has risen by 19 per cent in SDR terms over the past year owing to prices increases in iron ore, coking coal and thermal coal exports. As such, placed side by side with the exchange rate, the index skyrocketed by 16 per cent in Australian dollar terms over the past year.

According to Ninemsn News, the 3.9 per cent fall in October in SDR terms was Australia's biggest in a series of monthly declines when the global financial crisis hit in 2008 and 2009. There were other recorded declines in 1994 and 1998, but none reached 4 per cent since 1991 global recession.