kellz

Does anyone have any idea? Not thinking of taking advantage and moving loads of money around, just interested. Hope everyone out there in BE land is safe and well.

DownUnderPaddy

Clearly it adds a new dimension. The dollar will come under heavy selling pressure until the full outcome of the flood devastation on the Aussie economy is clear.

Ref : http://www.torfx.com/blog/index.php/...orecast-2/9803

"Over the last 24 hours selling of the Aussie has intensified as the flood reports worsen, and we are now testing the key resistance around 1.5850. This had been a key support level through October/November and it was only after the break below here that the latest slide really gained momentum in late December. The reaction to this level now will be a major technical test for the Pound. A daily close above 1.5850 would open up the possibility of a further rally towards the next noteworthy level at 1.6400. Clients should consider taking advantage of the recent improvement by hedging at least half of any AUD requirement now, or for those who wish to gamble on a continued rally (and given the strength of the long term downtrend this IS a gamble) you would be well advised to consider placing a stop order below the market to lock in a “worst case” exchange rate if the market retreats again."

lancastrian48

Said on Foxtel would only be short term spike/blip.

Sherlock Holmes

The dollar may weaken slightly but really, the pound needs to strengthen before we see any major differences. IMHO if course.

RedT

To ask a really dim question...if we open an Oz bank account now and transfer over sterling during this supposed 'blip', does the money go over at that rate and retain that value? I mean, when we transfer the money it's actually in Oz, not just in a UK holding account waiting to be properly transferred when we move and present ourselves at a branch in Oz?

*iz dim*

Tx

Sherlock Holmes

It will be in Oz, in dollars, and will keep the value.

RedT

Awesome! Thanks for confirming, off I go now to open an account

Tx

steen1976

Don't forget the banks may not offer the best themselves so look at exchanging with a forex company who can then deposit in dollars for you.

Sherlock Holmes

To RedT - I have to agree with steen there. Banks offer pretty horrible rates, even internally. Forex companies do rather better. If the headline rate is $1.58 you should get about $1.56 with forex. Could be as low as $1.50 with a bank.

RedT

Gotcha..so open the account with the bank, then ask transfer company to actually do the transferring for me.

Tx

Sherlock Holmes

Certainly worth a look. (if you have time) Currently 1.5780 with www.tranzfers.com

RedT

Will do, thanks again!

bingobob777

Any dip in the value of the $ may be short lived

http://macro-man.blogspot.com/2011/0...ueensland.html

MrCro

it's doomed the A$ is doomed, coz I now earn it!

seriously, Australian economy not half as healthy as portraid and this may be the straw that breaks the camels back!

ozzieeagle

To be blunt, the Bushfires in Victoria caused a building boom and seemed to help the local economy.

I was giving this some thought today, and remember how the Americans got out of the great depression by building roads. So something along those lines maybe.

I'd say there is a hell of a lot of building work coming up in Queensland, especially roads and houses etc and that has to be good for the economy.

Not sure though... surely it would be the same as the old American Scenario at the end of the 30's great depression ? albeit on a local Australian scale.