must demonstrate their understanding and application of the course materials to analyse and explain the factors that
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Question:
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 Jan 2021. The specific requirements are as follows:
- Discuss the factors which affect supply and demand of exchange rates.
- Develop your own theoretical model by combining any factors that you deem as important in determining the above exchange rate. You will need to estimate an econometric model to receive credit for this part.
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