International Finance: Currency Forecasting and Investment

International Finance
Part 1: Currency Forecasting and Investment Project

Asset market approach

AUD

Inflation

As Australia is in a transitionary stage away from heavy reliance on the mining sector to other sectors, growth will be relatively slow in the coming period. Resultantly inflation is not a major concern and should remain relatively low within the ideal range of 2 - 3 %. The recent decision of the RBA to cut interest rates in 2016 and policy of maintaining the target range of 2-3% should ensure this outcome.

Interest ...

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high salaries begin to have less of an effect on average income.


https://www.stgeorge.com.au/corporate-business/report-centre/interest-rate-outlook

Government Control

Malcom Turnbull has promised to provide a dynamic streamlined government which should boost the economy. As such action will grow the Australian economy it is expected that more AUD will be demanded in the international market.

Expectations

Australia is an export orientated country meaning a generally low AUD exchange rate is desired. Resultantly I expect the AUD to be pushed lower by market and government forces to maintain this facet.

USD/AUD Asset Market Approach

Inflation

It is expected that US inflation will increase over the next twelve months by up to 0.8 % points. Rising inflation is expected as a result of the US economy transitioning into an expansionary phase where GDP ...

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"International Finance: Currency Forecasting and Investment." Essayworld.com. October 8, 2016. Accessed July 26, 2017. http://www.essayworld.com/essays/International-Finance-Currency-Forecasting-and-Investment/105921.
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PAPER DETAILS
Added: 10/8/2016 12:34:50 AM
Submitted By: rasder6
Category: Business
Words: 1091
Pages: 4

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