According to the Big Mac Index, the implied PPP exchange rate is AUD $1\mathrm{.}30/$USD but the actual exchange rate is AUD $1\mathrm{.}40/$USD$.$ Thus, at current exchange rates the AUD $[$Australian dollar$]$ appears to be $\_\_\_\_\_\_\_\_$ by $\_\_\_\_\_\_\_\_.$

undervalued; approximately $7\mathrm{.}1\%$

overvalued; approximately $14\mathrm{.}29\%$

undervalued; approximately $14\mathrm{.}29\%$

undervalued; approximately $7\mathrm{.}7\%$