Question: 4 . There are several variables that are important in determining exchange rates. Develop a multifactor model based on your chosen variables and estimate the

4. There are several variables that are important in determining exchange rates. Develop a multifactor model based on your chosen variables and estimate the model based on historical data. Use your model to generate the AUD/USD forecast for the next quarter. Explain your data (include time period/frequency employed), methods, and results for your exchange rate forecasts. Hint: This is an open-ended question, and your group is encouraged to use your initiative and seek other sources for ideas on what else to include.

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