You must demonstrate their understanding and application of the course materials to analyse and explain the factors thatdetermine the historical movementofAUD/USDexchange rate and predictwhat the rate will be in 1 December 2020. The specific requirements are as follows:

Tasks/Objectives

• (1) Discuss using Purchasing Power Parity.
• (2) Discuss using Interest Rate Parity.
• (3) Discuss using the five factors in the partial supply and demand model.
• (4) Develop your own theoretical model by combining any factors that you deem as important in determining the above exchange rate.
• (5) Discuss any qualitative and quantitative data that may affect the determination of the above exchange rate based on Task 4.