Dave1892

Taking a hammering on the foreign exchanges, I was going to bring some funds over from the uk but think I'll wait and see now. Anyone else have any thoughts on this?

OzTennis

As quite often happens the reasons for this lie largely elsewhere, in this case what is happening in the US but there is also concern over falling commodity prices and what that will do to exports and demand for the currency.

I presume by 'holding off' you are hoping the dollar will slide more vs the pound and you will get more dollars later on. My guess is that the dollar will slide further, steady out or perhaps strengthen. Some bedtime reading:

http://www.theaustralian.com.au/busi...-1226645391635

http://www.abc.net.au/news/2013-05-1...r-dive/4697146

As you will see the experts reckon it could keep sliding just because it builds up momentum or perhaps it will recover due to profit taking.

Dave1892

Sentiment plays a big part add to this Labours total mismanagement of the budget and you can see downside for the dollar from here. I'm not expecting it to fall to much further though and 1.7 is my target. Of course it would be a lot a higher if it wasn't for the fact that sterling is f****d

chris955

Its a complete lottery,the dollar is sliding because of the interest rate cut, the fall in commodity prices, several bits of bad news on the economy, good news from elsewhere.
I would expect it to continue to fall against sterling but how far who knows.

quoll

Damn, I need to send some cash over here, better get onto that pronto I suppose!

roaringmouse

Bizarre statement - the AUD to GBP was $2.35 in November 2007 and $1.74 in August 2010 when Labor won office in the last 2 elections, and today it's $1.56. On what planet is that a downslide of the AUD due to Labor? The area that the AUD to GBP should probably be at the moment is around $1.75 as it's been overvalued for a while now.

Buzzy--Bee

The area that it should be is $2.5 to reflect more accurately the cost of living and the rate of pay.

BB

cheekymonkeys

I noticed it today when I went to get some money today.

commonwealth

This is all about the gaining strength of the United States of America's Dollar. The cross-exchange AUD/GBP is just a consequence of that.

Dave1892

Mmmm.....continued promises of a surplus now seen to be dreamt up in lala land

Amazulu

I agree. I'm no fan of our socialist government but the recent fall in AUD has got nothing to do with them

Amazulu

GBP doesn't come into the equation (neither does AUD for that matter). This is about the USD and the US economy

Actual exchange rate and PPP is all that matters - everything else is BE mumbo jumbo

commonwealth

It's been said a 5% drop in AUD v the United States Dollar has same effect on the domestic economy as a 1% drop in the RBA target interest rate.

astera

Good news from elsewhere usually props up the Dollar. If the proverbial was to hit the fan over in the US or China then the AUD would go into freefall, even if the Australian economy was performing wonders.

commonwealth

a US$0.80 per AU$ is manageable IMO. Could even be good.