(solution) Requirements: Students must demonstrate their understanding and

(solution) Requirements: Students must demonstrate their understanding and

hi could you kindly guide me on question 4 of the assignment on how to start creating the theoretical model 

Requirements:
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:
Task Objective
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
each task.
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.