Exchange Rate Prediction Formula: Change in exchange rates (CAD/AUD) = 0.0001 + 0.5723*GDP growth rate differential (CAD-AUD) + 0.4521"expected inflation rate differential (CAD - AUD) Using OECD data Canada Australia Regression Formula Exchange Spot rate change CAD/AUD Exchange Spot Rate Change AUD/CAD GDP Growth Expected GDP Growth Expected Inflation Change in Date Rate Inflation Rate Inflation GDP Differential Differential Exchange rate Bid Mid Ask Bid Mid Ask 1-Jan-18 Source: OECD Source: OECD Source: OECD Source: OECD CAD-AUD CAD-AUD Use regression Form 1.0344 1.0348 1.0352 0.9667 0.9664 0.9660 Q1-2018 1.956 0.937042198 2.528 2.111427885 -0.572 -1.174385687 -0.8582 0.1467 0.1467 0.1468 6.8174 6.8148 6.8122 Q2-2018 1.969 1.387095008 2.164 2.189471802 -0.195 0.802376794 -0.4743 0.5438 0.5440 0.5443 1.8388 1.8381 1.8374 Q3-2018 2.018 1.579211773 2.098 1.95410919 -0.08 -0.374897417 -0.2152 0.8118 0.8121 0.8125 1.2318 1.2313 1.2308 Q4-2018 2.008 1.741220085 2.167 2.096276275 -0.159 0.35505619 0.2514 0.7743 0.7746 0.7749 1.2914 1.2909 1.2904