hi could you kindly guide me on question 4 of the assignment on how to start creating the theoretical model
Students must demonstrate their understanding and application of the course materials
to analyse and explain the factors that determine the historical movement of
AUD/USD exchange rate and what will the rate be in 1 December 2016. The specific
requirements are as follows:
1 Discuss using on Purchasing Power Parity.
2 Discuss using on 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 data that may affect the determination of the above
exchange rate based on Task 4.
6 Comments and Conclusions ? compare and contrast Task 1-5.
For Task 1-4, you must demonstrate your understanding about the theories in Topic 1 6 and application of these theories in determining the exchange rate. You may use data
and calculations in your discussions. You must provide a brief summary at the end of
The maximum count of words is 3000 words for the report (excluding references). 1
mark will be deducted for every 100 words exceeding the limit.