According to the iPod index, Brazil is the dearest place to buy an iPod at USD327.71. In Australia an iPod is much cheaper at USD172.36 (AUD219.44) while the US the iPod sells for USD149.00.
According to the iPod index, is the Australian dollar over -or undervalued against the US dollar ? By how much ?
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The ipod index (in the old days known as the Big Mac index) does not provide an indication of whether the AUD is over or undervalued vs the USD. Tell me exactly what will happen with inflation and interest rates in both countries over the next two years, and then I'll and then I'll tell you whether the AUD is priced correctly.
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