Market View

You must use AUD/USD and AUD/NZD currency pairs and required to analyse what will happen to the spot market price of each currency pair in the next 6 months. Your analysis will be based on the theory (i.e. determinants of foreign exchange). Exchange rate determinants included the following comparative economic and non-economic indicators of the respective countries: Relative* interest rates, Relative* inflation rates, Relative* growth rates; Commodity prices (terms of trade); and Other factors including government intervention and exchange rate expectations.

You may also use other factors such the current global health crisis (COVID-19 pandemic), geo-political climate, and latest news that may affect the exchange rate. It is recommended that the report includes at least 3 of the indicators. The conclusion of the report should provide a recommendation about the direction of spot market price of the selected exchange rates in the next 6 months. Note you do not need to develop a statistical model or state a predicted price level.