ToT is quite a difficult concept, in October I was still confusing it with the Trade-Weighted Index.
Anyway, Terms of Trade refers to the price of goods exported relative to the price of goods imported. So, if we have a high ToT that means that the cost of imports is lower than the cost of exports. As you may be able to tell, it doesn't work independently from the exchange rate, but it is not the same thing. If the vale of the AUD is high then it will cost more for countries overseas to buy our exports, so they'll either buy less (lowering or ToT) or in some cases (as s the case currently) if Australia is a major exporter in a certain good (e.g. minerals) then the goods will continue to be bought at a high price and the ToT will rise.
Sorry if that's unclear, as I say, it's a confusing concept.