The following rates of interest and exchange rates are prevailing within Australia and Canada: Country Interest Rates Australia 5% Canada 11% Exchange Rate - (AUD/CAD) 0.7375-0.7425 What are the key macro-economic factors that influence exchange rates? If uncovered interest rate parity theory holds, what will happen to the AUD/CAD exchange rate? Estimate the forward rate based on the current exchange rates and rates of interest