About australian exchange rate

Assignment Help Microeconomics
Reference no: EM13849213 , Length: 2000 words

From the article titled ‘Australian dollar's next stop? US65¢ predicted as commodity prices decline' (Australian Financial Review July 17, 2015), answer the following questions.

(a) Briefly summarise the main issues discussed in this article? [Not exceeding 200 words]

(b) Using Demand and Supply model of exchange rate determination briefly explain how AUD is determined in the forex market, and what factors influence its fluctuations.

(c) Using exchange rate data from Reserve Bank of Australia and graphs (monthly data of last three years) analyse the movement of AUD relative to that of the US dollar? Is it in line with the world commodity price movement during this period? Are there any other factors contributing to this behaviour of the Australian dollar?

(d) Do you think that the AUD will fall as low as US 65C by the end of 2016? Justify your answer. What advantages do you think Australia will have in such a scenario?

(e) If the market rate is US 65C then what action could the Reserve Bank of Australia take in order to maintain the exchange rate at US 70C, and what side effects might this action have on the Australian economy? Do you think that such actions would be effective?

Word Limit: 2000 words maximum. Word count (excluding references) must be provided. Excess words will not be marked.

Reference no: EM13849213

Identify assess possible opportunities for growth

Identify and critically assess possible opportunities for growth within the organisation's MACRO environments. Write a logical, well-presented and accurately referenced piece

Current state of the australian economy

Prepare a report on the current state of the Australian economy and its management by the Federal government. You need to do this by examining the four economic indicators of

Xplain why scarcity forces individuals and society

Explain why scarcity forces individuals and society to incur opportunity costs. Give specific examples. (2.5 marks for explanation and diagram plus 2.5 marks for specific exam

The wool industry in hypothetica is highly competitive

The wool industry in Hypothetica is highly competitive with the many woolgrowers seeing themselves as being price takers in an industry with no significant barriers to entry.

Consider the iron ore production industry and assume

Consider the iron ore production industry and assume that there are just two producers. Both of firms are identical in terms of their production cost, if the two firms can coo

The opportunity cost of a scholarship

A university had initially allocated £500k to lectureships and scholarships, each of which costs £50k and £10k respectively. Its trustees have later reduced the overall budget

Estimate the demand for beef as a function

Estimate the demand for beef as a function of the price of beef, the price of pork, disposable income, and population. Label this as Model. Which independent variables have

What is the break-even revenue

The Automotive Supply Company has a small plant that produces speedometers exclusively. Its annual fixed costs are $30,000, and its variable costs are $10/unit. It can sell

Reviews

Write a Review

 
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd