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Haha thank you Ben :)

I got the same answer as you Ben, but my reasoning was a little bit different :) DEMAND FOR AUD DECREASED: This was due to lower interest rates which makes it less profitable for foreigners to invest in Aus. SUPPLY OF AUD INCREASED: This was due to the RBA selling AUD (buying USD) Thus D

Higher interest rates make it harder for firms and individuals to borrow, reducing the level of consumption and investment. Thus economic growth is expected to contract and inflation will fall. This is the main effect, and it's why the RBA will raise the cash rate if inflation is too high...

No, higher interest rates would cause an appreciation. Higher interest rates would make it more attractive for foreigners to invest in Australia (as they can get higher returns), increasing the demand for AUD.