Part one of term paper
Since hitting a low of $US0.5530 on 28 August, the AUD has recovered by over 17% to a high of $US0.6480 on 19 November. Several factors have been at work to boost the A$ against the $US over this time. · The RBA supported the A$ in late August-early September, as documented in the Semi-annual Statement of Monetary Policy (Nov 17, 1998). · ...

Part two of term paper
... economic growth outperformance combined with (2) the absence of an RBA interest rate cut (despite easings from the US Fed, Bank of Canada and the New Zealand). Outlook: another look at the fundamentals: The A$ may have gained recently against the USD but the move has been modest, retrieving less than half of the decline from $US0.82 in December 1996. A number of forecasts have been published suggesting that further A$ appreciation is in prospect for the year ahead. While it is commonly accepte ...