I'm certainly no expert in the Australian markets or the associated currencies. There are probably others a lot more qualified to discuss this than me.
It appears that the Australian central bank has begun moving up interest rates already. This is probably good if you're an income investor in Australian dollars. But higher rates tend to be bad news for equities and other assets.
Also given my one college econ class, I might have expected the Australian dollar to be strengthening against the US dollar given the ultra low US reserve rates - money should be flowing out of the US toward higher yields. However from what I see, it appears the Australian dollar has weakened significantly when I would have expected the opposite.
Clearly there is more going on here than I'm used to thinking about ... so maybe others will chime in and tell us what the important factors are?
BTW, I rather like the iShares ETFs. I have some of my IRA money in them.
An analysis of this fund is probably beyond my current knowledge. More research would be required as well as more interest on my part. At the moment I keep only a small amount of my investments in a Vanguard International fund and I let them worry about the best choice of international investment.