RDP 9601: Why Does the Australian Dollar Move so Closely with the Terms of Trade? Equation (C7)

\begin{matrix} \hat{d} = - 1.95, & \hat{e} = 1.45, & \hat{f} = 0.42, & \hat{g} = - 0.14, & {\hat{σ}}_{ε_{2}} = 0.06, & {\hat{ρ}}_{1, 2} = 0.003 \end{matrix}