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Assume the following information: Spot AUD = .7500 USD Spot AUD = 80 Yen Australian Government One Year Yield = 0.8% Australian Inflation Rate =

Assume the following information: Spot AUD = .7500 USD Spot AUD = 80 Yen Australian Government One Year Yield = 0.8% Australian Inflation Rate = 1.4% pa United States Government One Year Yield = 1.6% Japanese Inflation Rate = 0.4% pa Outline how the AUD is likely to change against the USD and the Yen in the next year.

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