The Australian Exchange Rate

devaluation and depreciations of Australian dollar against US dollar, euro, pound and yen comparing in terms of floating exchange rate. The phenomena behind fixed exchange rate and floating rate is; fixed exchange rate is a rate that is set or fixed by the government or central bank to maintain its currency against gold or another major currency such US dollar or the currency basket. In fixed exchange rate, the country’s central bank or other concerns will maintain exchange rate by buying and selling its

climate, a lower exchange rate provides more economic advantages than a high exchange rate. However, some experts argue that a higher exchange rate is overall beneficial for the economy through having an increased purchasing power, whilst others disagree. By having a lower exchange rate, a country is able to accelerate its exports industry, making exports cheaper abroad, in turn increasing demand for their goods. This report will discuss the recent trends in Australia’s exchange rate, in addition to

Analysis 4 2.0 Data analysis 4 2.1 Foreign exchange rate between AUD and USD (AUD/USD) 5 2.2 Foreign exchange rate between RMB and USD (RMB/USD) 7 2.3 Comparison of exchange rates of AUD/USD and RMB/USD 8 3.0 Relationship between AUD/USD and RMB/USD 10 4.0 Hypothesis testing 11 5.0 Factors Analysis 13 5.1 Inflation rate 13 5.2 Interest rate 13 6.0 The effects of exchange rate movements 13 6.1 American dollar depreciation 14 6.2 Australian dollar and Chinese Yuan appreciation 14

trade are central point that have affected the value of the Australian dollar over its past. Australia to a great extend is exporting nation and traditionally has generally disappearing exchange and in such manner waning trade rates over the decades. The currency will only rise if the prices improve. • Real GDP Growth - Domestic growth manipulates the imports on demand yet in the over all, the international marketplace and its growth rate will also affect the level of exports of a nation. The centrality

known as foreign exchange, sometimes abbreviated as forex. Consequently, international currency exchange rates are one of the most important determinants of a country 's relative level of economic health, playing a vital role in smoothing the adjustment of the real economy to terms of trade shocks and keeping inflation contained. For this reason, exchange rates are among the most watched, analysed and governmentally manipulated economic measures. In an open economy, the exchange rate is a key economy-wide

of reasons for the volatility of Australian financial stocks, which cause the whole financial share market fluctuating unsteadily in Australia as well. The purpose of this report is to discover the most influential cause of financial stocks volatility in Australia. Moreover, This report will analyse three main factors: a combination of three financial instruments, legal framework and inancial industry fundamentals, which influence the volatility of Australian financial stocks. 2. Three main

With a floating exchange rate, such as Australia's, supply and demand factors largely determine the dollar's equilibrium price. The exchange rate is sensitive to changes in both demand and supply, which can cause changes in the equilibrium exchange rate. Another factor, which can affect the supply and demand of Australian dollars, is intervention in the market by the Reserve Bank of Australia. DEMAND The demand for Australia's currency in the foreign exchange market (Forex) is a derived demand

Assignment: Integrative Problem - Exchange Rate Behavior Data: Beginning of year Spot rate of £ = $1.596 Spot rate of Australian dollar (A$) = $.70 Cross exchange rate: £1=A$2.28 One-year forward rate of £1= A$.71 One-year U.S. interest rate = 8.00% One year British interest rate = 9.09% One-year Australian interest rate = 7.00% Question 1 Determining whether triangular arbitrage is feasible and, if so how it should be conducted to make a profit. Background: Triangular arbitrage

The Australian Dollar (AUD), or “Aussie” for short, is the official currency of Australia. Its symbol is the same as the US Dollar, $. Exchange rate movements are commonly discussed in terms of US Dollars per AU Dollars (USD/AUD) or British Pound Sterling to AUD (GPD/AUD). While the Australian economy is only the 12th biggest economy in the world by nominal GDP, according to the Word Bank website, the AUD is the fifth most traded currency in the world by value (“GDP Rankings”, 1). The AUD was initially

Australian Dollar (A$) against the Japanese Yen (¥) Four Month forecast from 1st September to 31st December 2010 Like the other currencies mentioned in the report, the Japanese Yen (¥) also adopts a floating exchange rate. As this is a short term forecast of the Australian Dollar (AUD) against the Japanese Yen (JPY), a chartist approach will be taken to analyse the movements of the two currencies. The technical method and the effects of the government are the topics that will be analysed for