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The US$1 is currently equal to A$1.304 in the spot market. Also, the expected inflation rate in Australia is 0.027 percent whereas it is 0.047

The US$1 is currently equal to A$1.304 in the spot market.

Also, the expected inflation rate in Australia is 0.027 percent whereas it is 0.047 percent in the U.S.

What is the expected exchange rate one year from now if relative purchasing power parity holds?

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