Assignment Topic 2

AUD/USD Exchange Rate

The main movements of the AUD/USD exchange rate in the past eighteen months will be studied, as well as the underlying conditions that caused these specific movements to happen. Economic models and theories will be used to support the discussion and to analyse the reason for these fluctuations.
Discussion will then take place to whether these movements have been a help or a hindrance to the overall health of the Australian economy.

FIGURE 1.0

As seen above in Figure 1.0, the main direction of the AUD/USD exchange rate over the past eighteen months has been in a positive direction, shown here by a simple 15 day moving average over the price of the AUD in $USD.

FIGURE 1.1

Figure 1.1 above shows the four main fluctuations that have happened to the AUD/USD exchange rate in the past eighteen months that will be discussed in this essay.
To understand these movements, the demand and supply for these two currencies on the foreign......

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Title: Exchange Rate Movements
Approximate Word Count: 2437
Approximate Pages: 10 (250 words per double-spaced page)

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