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Assume the following information: Spot AUD = 1.050 NZD Spot AUD = 0.67 Swiss Francs Australian Government One Year Yield = 2.8% Australian Inflation Rate

Assume the following information:

Spot AUD = 1.050 NZD

Spot AUD = 0.67 Swiss Francs

Australian Government One Year Yield = 2.8%

Australian Inflation Rate = 2.1% pa

Swiss Government One Year Yield = - 0.2%

New Zealand Inflation Rate = 3.6% pa

Outline how the AUD is likely to change against the NZD and the Swiss Franc in the next year

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