wannabauzzienurse

I usually get annoyed by these threads as no one (even the 'experts') can really predict what might happen, but out of curiosity what are opinions.....rate is creeping up back into the favour of the pound..I was thinking perhaps exchange if it gets back to 2.3 (not far off) or is it likely to get better than that.
At the moment money in UK sitting in crappy 4. something % egg savings..if it was here it could be in my St George account currently paying 8%...I don't know what to do

DrWho

I reckon it'll nudge towards 2.40, or higher... I'm no expert so it's a wild guess, but I reckon whatever crap is coming Australia's way from the meltdown in the US/EU hasn't arrived yet and when it does it can't be good for the Aussie...

Wol

I agree. The $ has held up because of relatively high interest rates and because they can dig up WA and half of the NT and QLD and flog it. With interest rates forecast to come down, and the economy afloat because of the mining industry - which has got to be under pressure in a world slowdown - there's not a lot to keep the dollar high.

I reckon the "natural" level is 2.10 - 2.50.

dogscogs

Guess it depends on whether you need the money or not right now.

It's anyone's guess what the exchange rate will do, alot of people that get paid alot more than me to think about this stuff couldn't forsee the recent banking sector meltdown so who knows what is round the corner.

It could just as easily go the other way!.

scotty9000

trend is downwards with little to suggest a reversal, the potential % change in a couple of months dwarfs the difference in Oz/UK interest rates so if I were you I would just keep watching it and use the graphs on Ozforex.

Is your money in a safe place in the UK - like Northern Rock!!!

BATS666

well it doesn't look good for the AU$. A 6 cent drop overnight against the £. Even more if you have your money in Yen or US$.
Bloomberg reporting "The carry trade is dead" this a.m. can only mean that the AU & NZ$ will lose big time the next few months.
I advised my other half to sit on £ for a bit and things have gone from $2.10 to $2.36 today in only 2 months. Just wish I hadn't been panicked by her into changing a wad back in July when I thought $2.10 was a great rate !!
If you have your money in £ you [I]could[I] see AU$ exchange rates stabilise if UK interest rates drop alongside AU$ rates. I'm not betting on that one right now. If you wanna play the market I'd be going for US$ or Yen.
Bet then what the hell do I know ??????

Grayling

a lot safer than in an australian bank.

At least you have a guarantee of £50000 per investor if a bank fails in the UK.....Zilch in Autralia.