Suppose that Australian and US dollars are traded in a perfectly competitive market. Treat the price in this market as the amount of $US that can be traded for $1AUS (referred to as the US/AUS exchange rate), and the quantity traded as the quantity of $AUS traded. Suppose that the current interest rate in the US decreases so that it falls below the level of the Australian interest rate. The predicted effect would be:

A decrease in the supply of the $US in Australia

An decrease in the supply of the US/AUD exchange rate

An decrease in the supply of $AUS in the US

A decrease in the demand for $AUS in the US

No change in the US/AUS exchange rate