stariston

I was just wondering if anyone had changed plans or put anything
off a poss purchase etc due to the drop in the aussie dollar
when planning to relocate ???

rockpeblar

We're still flying over next month to start work. Renting out our house in the UK so no massive sums of money to transfer. Would prefer the rate to be nearer 2.5 thou for what money we do have.

stariston

it is a bit confusing at the moment the pound against the us dollar
is as close as a two dollar pound , and the kiwi has gone crazy
any money traders out there can shed some future light say when
it will return to A$ 2.53 ??

OzTennis

Sorry to be pedantic but it is the pound which has dropped vis a vis the Australian dollar i.e. the pound buys fewer dollars and cents than it did a few months ago.

OzTennis

carlosthegerbil

I would say that in the grand scheme of things US$ has dropped in value against both the GB£ and AU$ which in turn have both grown in value, but the AU$ has grown more than the GB£...

But the financial world is waiting for an inevitable interest rate raise from the Aussies, which should shake things up a bit.

In a word.

chrispy

Won't an interest rise in australia make the doller even stronger? i think an interest rise here would be better..

carlosthegerbil

You'd think so, but it doesn't always work like that, sometimes it can send it the other way...

Another thing to take on board is that the £ is at it's strongest for about 15 years against the US$, and some experts reckon it's gonna get higher and break through the $2 mark very soon, based on the premise that the Bank of England will be raising rates at least twice this year as is the widely held view in the city.

There are some good articles on http://www.dailyfx.com worth reading..

I am intending on keeping hold of my pennies until the rate gets better anyway..

chrispy

Now that would be an ideal scenario... interest rise in Aus to dampen the housing market and for the doller to inexpliquably fall against the £... one can only hope

OzTennis

Yes, the greenback has more impact on the Australian dollar than sterling (arguably yen and yuan/renmimbi has more impact than £ also). Currencies values are established by a complicated mixture of cross-currency movements, economic indicators, stock market fluctuations, political events, interest rate changes and so on. Anyone who thinks they can predict exchange rate movements is little different from the punter who backs horse #8 in the 5th race or Chelsea for the quadruple.

I would add that interest rates aren't stable or fixed in the UK and if I/R's change in either country, much will depend on the timing of respective changes. The decisions by the BofE Monetary Policy Committee to not change I/R's since January and leave the base rate at 5.25% has had a dampening effect on the £.

OzTennis

carlosthegerbil

I agree, the whole thing is a complete gamble. It only takes another 9/11, heaven forbid, to throw all existing data and opinions out of the window.

I think that the Interest Rate movements of AU$ and GB£ will make for interesting movement over the next few months, and I suppose it can only be good for both our economies to have such strong currency. Doesn't help us people flying over though!

I am just looking forward to US$2 exchange rate.. how cool!?

Buzzy--Bee

Me too as I spending 1 month in North America in June before landing in Melbourne.....



Buzzy

carlosthegerbil

Happy hour will be Happy Happy Hour!

OzTennis

Yep, £1 = $2 is a very strong psychological barrier which currency markets tend to shy away from. $1.985, $1.99, time to sell/profit take, won't go over $2 .... $1.97, $1.975 .............. The other thing is that currency rates are largely determined by financial institutions and not punters changing their dosh to emigrate. Pension funds, banks, insurance companies, hedge funds, the Warren Buffitt's/George Soros's of this world are the big players who can make or break a currency.

OzTennis

stariston

well spoke to soon
bloomin things on its way up again due not to financial statistics
but a black cat crossing my front lawn i bet i think the word lottery
springs to mind

carlosthegerbil

Doh! It just breached $2.00

wwwooooooo yayyy!

*salutes the flag*