Australia has raised its commodity exports target this fiscal year as larger demand for coal, iron ore, and wool are now at its record high assuring higher prices for domestic exporters.

The Canberra-based Australian Bureau of Agricultural and Resource Economics-Bureau of Rural Sciences said today in an e-mailed statement that sales might hit a 6.2 percent increase to A$214.9 billion ($203.4 billion) in the fiscal year ending June 30, 2011. This is higher than the revised June target estimate at A$202.5 billion.

Bureau analysts Alan Copeland and Farah Beaini wrote in the report that energy and mineral export earnings are forecast to grow 30 percent to A$179.9 from the previous.

"Increases in shipments and higher prices for iron ore and coal were the main reasons for the rise, with a "strong performance" also expected for gold, alumina and nickel. Continued strong growth in emerging economies, especially China and India, is expected to drive commodity demand and underpin prices."

Interest rates trigger

The expected current account surplus stemming from the mining industry's earnings will likely fuel a higher domestic growth output, thus prompting the Reserve Bank of Australia Governor Glenn Stevens to signal an upward movement in interest rates soon.

Australian companies BHP Billiton Ltd and Rio Tinto Group are among the world's biggest producers boosting domestic output of iron ore.