Re: Advice on current exchange rate please?
 

The Australian interest rate decision is on November 7th - there is a possibility that there will be a 0.25% hike as the inflation figures are still very high.

This speculation has added to the AUD's strength and, unfortunately for migrants, the market is now trading at around the 2.26 levels.

I hope this helps,

Thanks,

Richard, HiFX

Re: Advice on current exchange rate please?
 

great for paying a uk mortgage when earning $aus........

Re: Advice on current exchange rate please?
 

Does that mean if it does go up on 7 Nov sterling will drop even lower than 2.26? Looking at history charts it seems that the rate reached today are the lowest by far that it's been in 5 years.

Just seems bizarre that I can have just sold my flat at a 40% profit on what I paid 18 months ago and yet at the same time the currency exchange rate is so dismal. Oh well, I'll never understand these things:eek:

Re: Advice on current exchange rate please?
 

...not necessarily....the market is already fairly certain that interest rates will rise on Nov 7th and so that's probably already priced into the $2.25 rate today. However, many are talking about ANOTHER interest rate rise early next year as inflation seems to be getting a bit out of hand again. If the reserve bank continues to talk tough after the rise next month (if it happens) then the A$ is likely to remain strong.

The UK economy is strong too....that gives the pound some support.....think yourself lucky you don't have to convert US$ to A$ - now would be a great time to be emigrating to the US, falling house prices + $2.05 to the pound!

Or is that 3 interest rate rises!? http://www.brisbanetimes.com.au/news...941279270.html

Re: Advice on current exchange rate please?
 

I expect by now the market will already have factored in a rise. It seems to be the unexpected things that make sudden movements. Northern Rock seemed to damage the pound - as did the London terrorist attacks. Similarly, if economic data come out that differ from what is expected, there can be a sudden shift in rates.
The logic of the current situation would suggest that the pound won't get any stronger (really that's why the rate is what it is if you see what I mean), but history suggests that eventually it will, however transiently. There's always something that will come along and upset the apple cart eventually. The trouble is you don't know which way it will go and you can only wait so long when you need somewhere to live. And the longer you leave it, the shorter the time window you have in which to hope for a small blip to exchange at the top of.

Re: Advice on current exchange rate please?
 

....the Aus election on Nov 24th could be one such exceptional event....rightly or wrongly the market may associate a Labor victory with economic uncertainty....that could knock the A$ a bit.

Re: Advice on current exchange rate please?
 

....its actually the lowest for 10 years, but if you go back to 1996 you'll find the rate at about $1.90! :blink: