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Assume the following information: Spot AUD = 0.5800 GBP Spot AUD = 90 Yen Australian Government One Year Yield = 3.4% Australian Inflation Rate =

Assume the following information: Spot AUD = 0.5800 GBP Spot AUD = 90 Yen Australian Government One Year Yield = 3.4% Australian Inflation Rate = 4.8% pa Great Britain Government One Year Yield = 1.9% Japanese Inflation Rate = 2.6% pa Outline how the AUD is likely to change against the GBP and the Yen in the next year.

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