Eliphaz is a foreign exchange trader with Citi bank. He notices the following quotes.

Spot exchange rate: AUD $1\mathrm{.}6627/$USD

Six$-$month forward exchange rate: AUD $1\mathrm{.}6558/$USD

Six$-$month USD interest rate: $3\mathrm{.}5\%$ per year

Six$-$month AUD interest rate: $3\mathrm{.}0\%$ per year.

Goven the data above, which statement is correct?

Question $3$Select one:

A$.$

The AUD is strong in the forward market

B$.$

The AUD is trading at forward discount

C$.$

The USD is trading at a forward premium

D$.$

The USD is strong in the forward market