Preview

Exchange Rate Analysis

Powerful Essays
Open Document
Open Document
2655 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Exchange Rate Analysis
Table of Contents Table of Contents 2 EXECUTIVE SUMMARY 3 1.0 Background Information 4 1.1 Limitations of Analysis 4 2.0 Data analysis 4 2.1 Foreign exchange rate between AUD and USD (AUD/USD) 5 2.2 Foreign exchange rate between RMB and USD (RMB/USD) 7 2.3 Comparison of exchange rates of AUD/USD and RMB/USD 8 3.0 Relationship between AUD/USD and RMB/USD 10 4.0 Hypothesis testing 11 5.0 Factors Analysis 13 5.1 Inflation rate 13 5.2 Interest rate 13 6.0 The effects of exchange rate movements 13 6.1 American dollar depreciation 14 6.2 Australian dollar and Chinese Yuan appreciation 14 7.0 Conclusion 15 Reference 16 Appendix 17

EXECUTIVE SUMMARY

Statistics has proved to be an essential tool towards gaining a better understanding of many business needs and global economic by collecting, analyzing, interpreting, and presenting of the data.

This paper by using statistic method discussed the main movements of the exchange rate between Australian Dollar against American Dollar (AUD/USD) and Chinese Yuan against American Dollar (RMB/USD) in the past 120 days.

The exchange rates data has been collected and analysed, presented by graphs to show the general trend of exchange rate between AUD/USD and RMB/USD for the past 120 days. The six research questions has been formulated and concluded. We use the statistical techniques such as the regression equation to work out the relationship between AUD/USD and RMB/USD. As well as using the hypothesis testing to find out any significant differences in the variability of the depreciation of USD for the two other currencies.

We were underlying conditions and factors that caused these specific movements to happen. And also economic models with the sample population selected will be used to support the discussion and to analyses the reason for these fluctuations such as the inflation rate and interest rate.

1.0 Background Information
Due to the global financial crisis in 2008, many
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Bus 308 Week 1 Business Statistics Paper
    • 729 Words
    • 3 Pages

    Bus 308 Week 1 Business Statistics Paper

    When we hear about business statistics, when think about the decisions that a manager makes to help make his/her business successful. But do we really know what it takes to run a business on a statistical level? While some may think that business statistics is too much work because it entails a detailed decision making process that includes calculations, I feel that without educating yourself on the processes first you wouldn’t know how to imply statistics. This is a tool managers will need in order to run a successful business. In this paper I will review types of statistical elements like: Descriptive, Inferential, hypothesis development and testing and the evaluation of the results. Also I will discuss what I have learned from business statistics.…

    • 729 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Qnt 351 Week 1 Assignment
    • 390 Words
    • 2 Pages

    Qnt 351 Week 1 Assignment

    When it comes to the role of statistics in business decision making it is applied in many ways in terms of consumer preferences or even financial trends. For example, managers across any type of business unit formulate problems, they decide on a question relating to the problem and then form a statistical formulation of the question is used to determine answers to all of the above. An example of a business question may be how many calls are answered on average in a call center and how can we increase the numbers of calls answered per hour. Another example may be how we can increase the number of accounts we…

    • 390 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    BADM 528 2013 Fall Syllabus
    • 2736 Words
    • 11 Pages

    BADM 528 2013 Fall Syllabus

    The primary objective of this course is to expose you to issues involved in business research and statistics. Statistical analysis is important to businesses and provides the foundation for decision making. Dealing with data is an everyday occurrence for business professionals. This course will address how to get information from data and will cover describing data and relationships, probability, confidence interval estimation, and hypothesis testing among other topics.…

    • 2736 Words
    • 11 Pages
    Powerful Essays
    Read More
  • Good Essays

    QNT 351 week 1 paper
    • 650 Words
    • 2 Pages

    QNT 351 week 1 paper

    The purpose of this essay is to examine the purpose of statistics in business. Our text, Lind (2011) defines statistics as “The science of collecting, organizing, presenting, analyzing, and interpreting data to assist in making more effective decisions” (p.5).…

    • 650 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Intro to Business
    • 576 Words
    • 2 Pages

    Intro to Business

    1) First, describe in your own words the significance and differences in foreign currency exchange rates.…

    • 576 Words
    • 2 Pages
    Good Essays
    Read More
  • Good Essays

    Economics
    • 765 Words
    • 4 Pages

    Economics

    Analyse the effects of changes in the exchange rate of the Australian dollar (against other currencies) on the Australian economy.…

    • 765 Words
    • 4 Pages
    Good Essays
    Read More
  • Powerful Essays

    COMM 291BV Course Outline And Schedule
    • 3026 Words
    • 23 Pages

    COMM 291BV Course Outline And Schedule

    Statistics are pervasive and its basic concepts have become essential to modern business practice. Students in this…

    • 3026 Words
    • 23 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    TECO401 The Principle Of Economics
    • 1509 Words
    • 7 Pages

    TECO401 The Principle Of Economics

    With the development of economic globalization and technology innovations, the global economic is affected by different aspects. Specially on the currency market and international exchange rate, which is depends on gross domestic product(GDP) as well as the inflation rate, interest rate, bond market, labor market, etc. Even the unemployment rate can be results on the changes of the currency market. Based on the article: US jobs data pressure Aussie dollar, it is argued that, the macroeconomics theory will analyze and explain the exchange rate between US and Australia. Three major parts used from macroeconomics theory will be discussed which are: gross domestic product(GDP) structure, unemployment…

    • 1509 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Best Essays

    Exchange Rate vs Export Amount
    • 3735 Words
    • 15 Pages

    Exchange Rate vs Export Amount

    Is there any relationship between the exchange rate of a country and their export amount?…

    • 3735 Words
    • 15 Pages
    Best Essays
    Read More
  • Satisfactory Essays

    International Finance Assignment #1
    • 267 Words
    • 2 Pages

    International Finance Assignment #1

    2. Did the Australian Dollar appreciate or depreciate against the US dollar from Tuesday to Wednesday?…

    • 267 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Australian dollar
    • 2288 Words
    • 10 Pages

    Australian dollar

    a) A fall in the value of the Australian dollar (AUD) against the U.S. dollar (USD) benefit Billabong in two folds, strengthened price competitiveness and translation advantage. Firstly, the Americas segment accounts for about 50% of Billabong’s sales revenue in 2008 and 2009. (Appx.1) In case of depreciation of AUD against USD, the price of imported surfwear to the U.S. in terms of USD will decrease. The US importers demand more for Billabong’s products. The sales increases from the strengthened price competitiveness. Secondly, when Billabong received payment from the importers, it will translated back into AUD for use in Australia. As AUD depreciate, the receipt in USD can be translated into more AUD than before, bringing increase in sales revenues.…

    • 2288 Words
    • 10 Pages
    Good Essays
    Read More
  • Good Essays

    Economic Comparison Australia and Asian Economies Essay Example
    • 1497 Words
    • 6 Pages

    Economic Comparison Australia and Asian Economies Essay Example

    PART A SNAPSHOT OF ECONOMIES AUSTRALIA CHINA TAIWAN HONG KONG Population 20,434,176 1,32,18,51,888 2,28,58,872 69,80,412 Population growth rate 0.824% 0.606% 0.304% 0.561% Population density 2.6583 137.73 635.321 6392.318 Annual inflation rate 3%1 4.70%2 1.80%3 2%4 Unemployment rate 4.40%1 4%2 3.90%3 4.20%4 GDP growth rate 4%1 11.40%2 5.50%3 5.80%4 Exports (% of GDP) 20% 41.4% 72.3% 207.4% Current Account Balance (% of GDP) -6.2%5 11.1%6 8.3%7 12.3%8 Saving rate (%of GDP) 22.85% 30.69%9 15.26%9 45.81%9 Official interest rate 5.99% 2.8% 2.750 % 2.5% Representative commercial interest rate 9.85% 7.9% 4.7% 5.9% Urbanisation rate 84.9%(2005) 40.5%(2005) 81%(2005) 93% Exchange rate against the US$ 1.21371 0.1407122 0.0325433 0.1284134 Percentage change in local currency cost of US$ over the last year -8.64%1 -4.51%2…

    • 1497 Words
    • 6 Pages
    Good Essays
    Read More
  • Good Essays

    Foreign Currency Exchange
    • 730 Words
    • 3 Pages

    Foreign Currency Exchange

    The foreign exchange rate is extremely significant in everyday life, even if you may not understand how or experience first hand. How much you give up of one currency to obtain another unit of currency is called the foreign exchange rate. Chapter 3, exporting global business, shows how important exporting and importing goods from around the world is and how it rely’s on the foreign currency exchange.…

    • 730 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Exchange Rate Movements
    • 1389 Words
    • 6 Pages

    Exchange Rate Movements

    4. Assume the Hong Kong dollar (HK$) value is tied to the U.S. dollar and will remain tied to the U.S. dollar. Last month, a HK$ = 0.25 Singapore dollars. Today, a HK$=0.30 Singapore dollars. Assume that there is much trade in the computer industry among Singapore, Hong Kong, and the U.S. and that all products are viewed as substitutes for each other and are of about the same quality. Assume that the firms invoice their products in their local currency and do not change their prices.…

    • 1389 Words
    • 6 Pages
    Good Essays
    Read More
  • Best Essays

    Business Implications of Exchange Rate Changes
    • 2826 Words
    • 12 Pages

    Business Implications of Exchange Rate Changes

    Who could imagine not to travel in 2013 or to eat any fruit during winter time? The worldwide trade plays a significant role for all economies involved, especially at a time that is characterized by increasing globalization and integration of markets. Despite all benefits of trading, its risks must also be considered in order to reveal any trade-restrictive effects and possibly eliminate or reduce these. (Beck, 2009) In this global economy goods and services are imported and exported between countries with different currencies. For this purpose exchange rates, the amount at which one currency is traded for the other country’s currency, are used to complete the transaction. The collapse of the fixed exchange rate system of Bretton Woods in the early 1970s laid to the transition from fixed to flexible exchange rates. This means that currency exchange rates change every day depending on the forces of supply and demand for money. Therefore, in addition to the already existing foreign trade risks of the fixed exchange rate system, economic subjects face fluctuating exchange rate conditions. In…

    • 2826 Words
    • 12 Pages
    Best Essays
    Read More

Related Topics