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This video tutorial examines exchange rate data on the pound against the Australian dollar over the past 15 years. The pound has generally lost value externally against the Australian dollar, with some volatility. Between 2006 and 2012, the pound depreciated against the Australian dollar but since 2012, there has been a switchback and the pound now buys more Australian dollars. In 2015, there was an appreciation in the pound. This demonstrates the concept of depreciations and appreciations in floating exchange rate systems.