ABCDiamond

Between which currencies ?

SunshineSeeker

Hoping to send off my skills assessment soon, which will be Au$850, so I hope it's not just a blip!

comet555

For us it will be Oz versus Canadian. I think the Canadian dollar has went down a little bit against the US but nowhere near as much as AUD/US.

Earlier in the year they were predicting AUD/CAD would be close to par by the end of the year. I'm certain that won't happen now. Just hoping for something like 0.9 which seems to be about average for that pairing.

JenniGee

We'll be looking to trade £ for $.... about £300K worth.

Our 4 bed Melbourne dream house on Bayside has turned into a 3 bed in Northern suburbs over the last few months & for a while, was even looking like a cardboard box under a bridge on the Princes Freeway

However, overnight we may have just about regained our 4th bedroom & with more of this might just be heading back to the seaside again

OH is talking about paying £2K to fix an option at £1:$2 which at the moment is looking like a good plan Happy days though

steve_kelly_and_boys

OH is talking about paying £2K to fix an option at £1:$2 which at the moment is looking like a good plan Happy days though [/QUOTE]

pay 2k to fix an option ?

hifx and ozforex do a forward contract for free

when it reaches your set value you just pay 10% and then the rest when you settle the account

JenniGee

Not sure myself how excactly it works, but its kind of an insurance for want of a better phrase...basically you set a date & a price, in our case $2 to the £. It them guarantees you will get that rate on the day even if it falls back...but don't ask me how it works coz I really don't have a clue

Maybe someone can come along & enlighten me

Bermudashorts

A forward is different to an option because it is binding. I imagine it would be pretty hard to find a forward contract with a deal rate of 2:1

The option is not binding, for instance if the rate available in the market were $2.1 to £ on your contract date you would just say no thanks I won't exercise my option because there is a better rate on the open market. So the bank is taking all the risk, because they would have to sell to you at £1:$2 even if the open market rate is only 1.9. You on the other hand are risk free because you don't have to exercise the option if there is a better rate on the market by the time

So they want to be compensated for that risk and that is where the £2k comes in.

FWIW, I think it is not a bad idea at all.

JenniGee

Thanks for that Bermudashorts...I knew OH wouldn't do anything daft with our money, it was just that when he was telling me about it, I didn't quite follow

So on the amount we have to exchange, the £2K easily pays for itself on the deal, whereas it might not necessarily on smaller amounts

stuartsummers1980

Actually without the Chinese Australia would be seeing the same kind of hit from the recession as the rest of the world, as its them buying what the miners are mining that's benefiting Aus. Aus as a country has a GDP smaller than the state of Florida!

SunshineSeeker

That's not as bad as it sounds given the population of Australia is around 21.5m, and the population of Florida is 18.5m

fish.01

It does? Surprising given the figures on the internet putting Australia's total nominal GDP a lot higher? Which figures are you looking at?

Australia's per capita GDP adjusted for purchasing power is now 10th in the world.

http://en.wikipedia.org/wiki/List_of...PP)_per_capita

stuartsummers1980

Sorry duh on my part. I meant California. And actually to be fair I don't know how up to date that is. Here's a link of the American States mixed in with GDP's of countries around the world.

http://en.wikipedia.org/wiki/Compari...es_nominal_GDP

mark wool

I to hope the pound goes up condiderably, but remember not to hope that the economy goes downhill in oz to much. This is the country we have chosen to live, and if it gets affected to much i hope we are all in safe jobs. Converting dollars back to pounds may not make for a pretty picture. Hope, but not to much!

caliburn

I want AUD to go down only when I exchange my money. Afterwards, I hope it goes up, up and up all the way. Is it too much to ask? Not at all..... because thats how markets work.... it hits bottom, and then it goes up!

freebo

The trick is knowing when any market is at the bottom (or the top), do anything close to that and you can make a fortune, but even the very best can only do it about 60% of the time.