|Criterion||NN (Fail)||PA (Pass)||CR (Credit)||DI (Distinction)||HD (High Distinction)|
|Market View and Summary Report||Depth and|
relevant to the
of sources to
based in listed
in the course
Address content in
|Overall grade (marks):|
NN indicates unsatisfactory performance, evidence of lack of understanding of course materials/requirements, and/or inadequate, or incomplete depth and breadth of analysis and a
lack of relevance.
PA indicates work at or just above minimum standard; tends to be more descriptive than analytical, and where arguments are not strongly supported.
CR indicates above-average work demonstrating an an understanding of the concepts and their application. Good research and application.
DI indicates superior work featuring originality, solid research, good critical analysis, and well-substantiated argument.
HD indicates outstanding work featuring originality, excellent critical analysis, detailed research and comprehensive coverage of relevant issues. Presented at professional analyst
IF Additional Information:
Students must demonstrate their understanding and application of the course materials to analyze and explain the factors that determine the historical movement of AUD/USD exchange rate and predict what the rate will be on 1 December 2019. The specific requirements are as follows:
- (1) Discuss using on Purchasing Power Parity.
- (2) Discuss using on Interest Rate Parity.
- (3) Discuss using the five factors in the parts supply and demand model.
- (4) Develop your own theoretical model by combining any factors that you deem as important in determining the above exchange rate.
- (5) Discuss any qualitative and quantitative data that may affect the determination of the above exchange rate based on Task 4.
- (6) Comments and Conclusions – compare and contrast Task 1-5. For Task 1-4, you must demonstrate your understanding of the theories in Topics 1 – 6 and the application of these theories in determining the exchange rate. You may use data and calculations in your discussions. You must provide a brief summary at the end of each task.
NOTES FROM Lecturer:
Sensitivity analysis does 1 or 2 enuff.
- Task 1 – PPP does 2 scenario analysis then compare. Can either use the PPP model or regression?
- Task 1-4 = brief the theory, pro & cons for the theory. (MUST HAVE) All the predicted rate will be different.
- Task 3 = All 5 factors from the course notes, every factor will have a predicted movement on SSDD curve. (Means got 5 individual movement) The overall effect will strengthen or weaken AUD (Don’t give numbers).
- Task 4 = Community prices for AUD (MUST DO) plus 2 or 3 more factors then combine it and predict a movement on the exchange rate. Try to get a journal article support the factors u use. Doesn’t matter if they use on different currency as long as the factor same it’s alright.
- Task 5 – Discuss mainly on qualitative because all factors are quantitative. 1 qualitative factor, Impending trade war. Give 2 or more factors. 2 quantitative , 2 quantitative.
- Task 6 – Critical analysis on all the 4 and choose the best, and why?
Additional: Mid rates means no commission taken by banks thru bid-offer