currencies whats going on?
#1
currencies whats going on?
Have just checked the exchange rate 2.5446. has anyone got a clue whats going on?
Jenny
Jenny
#3
Re: currencies whats going on?
Originally posted by jensteve
Have just checked the exchange rate 2.5446. has anyone got a clue whats going on?
Jenny
Have just checked the exchange rate 2.5446. has anyone got a clue whats going on?
Jenny
#4
BE Enthusiast
Joined: Dec 2003
Location: Tyabb, Mornington Peninsula, Victoria, Australia
Posts: 563
Re: currencies whats going on?
Originally posted by jensteve
Have just checked the exchange rate 2.5446. has anyone got a clue whats going on?
Jenny
Have just checked the exchange rate 2.5446. has anyone got a clue whats going on?
Jenny
I bought a while back at 2.44, still happy with that, know what i've got , leaving some for the next man. good luck everyone
blimey could have exchanged at 2.53, thats only a difference of $30,000, see im really generous leaving all that wonga for the next man lol
andy
#5
Re: currencies whats going on?
Originally posted by jensteve
Have just checked the exchange rate 2.5446. has anyone got a clue whats going on?
Jenny
Have just checked the exchange rate 2.5446. has anyone got a clue whats going on?
Jenny
xe.com.....
1.00 GBP
United Kingdom Pounds = 2.54192 AUD
Australia Dollars
love boom
xx
#6
Re: currencies whats going on?
Originally posted by jensteve
Have just checked the exchange rate 2.5446. has anyone got a clue whats going on?
Jenny
Have just checked the exchange rate 2.5446. has anyone got a clue whats going on?
Jenny
So you get lots of dollars for your pounds but no job when you get there.
these are the personal thoughts of chairman Bix and should not be taken in a serious manner
#7
Just Joined
Joined: May 2004
Location: West Yorks
Posts: 1
Jenny,
I believe the leap to 2.50+ on Friday is mainly to do with the sudden strengthening of the US Dollar, due to the booming US economy as identified by the US Jobs figures released on Friday. That means US interest rates are likely to rise quicker than most people thought, perhaps even June. Gb pound had an interest rate rise earlier in the week. Aus Dollar on the other hand was kept steady. So...as long as figures suggest USD and GBP are likley to see more interest rate rises and AUD aren't then... PROBABLY! the exchange rates look promising or at least steadyish for at least a couple of months, seeing us through a June USD rise and an August GBP rise.
Lots of factors like relative state of economies but there doesn't seem to be much danger of a steep drop GBP/AUD except for major unforseen global curveballs which are of course unforseen. Hope this helps.
Chris
I believe the leap to 2.50+ on Friday is mainly to do with the sudden strengthening of the US Dollar, due to the booming US economy as identified by the US Jobs figures released on Friday. That means US interest rates are likely to rise quicker than most people thought, perhaps even June. Gb pound had an interest rate rise earlier in the week. Aus Dollar on the other hand was kept steady. So...as long as figures suggest USD and GBP are likley to see more interest rate rises and AUD aren't then... PROBABLY! the exchange rates look promising or at least steadyish for at least a couple of months, seeing us through a June USD rise and an August GBP rise.
Lots of factors like relative state of economies but there doesn't seem to be much danger of a steep drop GBP/AUD except for major unforseen global curveballs which are of course unforseen. Hope this helps.
Chris
#8
Guest
Posts: n/a
The AU$ was 2.84 when i entered Oz in November 2002 and remained there till Jan last year then dropped.
#9
Just Joined
Joined: Feb 2004
Location: Back in UK after 3 years Oz
Posts: 9
FX rates are normally determined by interest rate differentials. The reason that the Aussie dollar has been so high recently is that Aussie interest rates have been much higher than the rest of the world 5.25% against the G7 average of 1.5%. Therefore, all else being equal, you will get a higher return on investment in Australia - so short term capital piles in supporting the currency.
The tide has now turned in my opinion - UK interest rates are on the rise (0.25% hike last week) and the US Federal reserve has indicated that interest rates may soon be moving upwards there. However, the Australian reserve bank has indicated that the next move in Aussie interest rates will be down to prevent a proper house price crash. The Aussie market is very susceptible to interest rates in this respect as 45% of mortgage borrowing last year was buy to let investors. If these people were all forced to pull out of the market at once the consequences would be disasterous.
The Aussie chancellor has just been quoted as saying "I think it's going to be a very difficult year" and that house "Prices are coming off . . . I wouldn't call it a collapse, but I'd call it a downturn"
If you are thinking of swapping into dollars now - DONT - hang on as long as possible. Momentum buying will support the trend, and economic fundamentals mean currency movements are a one way bet at the moment (all IMHO of course)
The tide has now turned in my opinion - UK interest rates are on the rise (0.25% hike last week) and the US Federal reserve has indicated that interest rates may soon be moving upwards there. However, the Australian reserve bank has indicated that the next move in Aussie interest rates will be down to prevent a proper house price crash. The Aussie market is very susceptible to interest rates in this respect as 45% of mortgage borrowing last year was buy to let investors. If these people were all forced to pull out of the market at once the consequences would be disasterous.
The Aussie chancellor has just been quoted as saying "I think it's going to be a very difficult year" and that house "Prices are coming off . . . I wouldn't call it a collapse, but I'd call it a downturn"
If you are thinking of swapping into dollars now - DONT - hang on as long as possible. Momentum buying will support the trend, and economic fundamentals mean currency movements are a one way bet at the moment (all IMHO of course)
#11
Forum Regular
Joined: May 2004
Location: Floreat - Perth - WA
Posts: 48
In addition to the strong US dollar the Australin $ is affected by Gold prices amongst other commodoties. The Gold prices are on a bit of a freefall. So the Aus $ looks like it will get weaker!!! I'm holding out for a while!
Martin
Martin
#12
Joined: Aug 2003
Posts: 11,149
Originally posted by Mondo
FX rates are normally determined by interest rate differentials. The reason that the Aussie dollar has been so high recently is that Aussie interest rates have been much higher than the rest of the world 5.25% against the G7 average of 1.5%. Therefore, all else being equal, you will get a higher return on investment in Australia - so short term capital piles in supporting the currency.
The tide has now turned in my opinion - UK interest rates are on the rise (0.25% hike last week) and the US Federal reserve has indicated that interest rates may soon be moving upwards there. However, the Australian reserve bank has indicated that the next move in Aussie interest rates will be down to prevent a proper house price crash. The Aussie market is very susceptible to interest rates in this respect as 45% of mortgage borrowing last year was buy to let investors. If these people were all forced to pull out of the market at once the consequences would be disasterous.
The Aussie chancellor has just been quoted as saying "I think it's going to be a very difficult year" and that house "Prices are coming off . . . I wouldn't call it a collapse, but I'd call it a downturn"
If you are thinking of swapping into dollars now - DONT - hang on as long as possible. Momentum buying will support the trend, and economic fundamentals mean currency movements are a one way bet at the moment (all IMHO of course)
FX rates are normally determined by interest rate differentials. The reason that the Aussie dollar has been so high recently is that Aussie interest rates have been much higher than the rest of the world 5.25% against the G7 average of 1.5%. Therefore, all else being equal, you will get a higher return on investment in Australia - so short term capital piles in supporting the currency.
The tide has now turned in my opinion - UK interest rates are on the rise (0.25% hike last week) and the US Federal reserve has indicated that interest rates may soon be moving upwards there. However, the Australian reserve bank has indicated that the next move in Aussie interest rates will be down to prevent a proper house price crash. The Aussie market is very susceptible to interest rates in this respect as 45% of mortgage borrowing last year was buy to let investors. If these people were all forced to pull out of the market at once the consequences would be disasterous.
The Aussie chancellor has just been quoted as saying "I think it's going to be a very difficult year" and that house "Prices are coming off . . . I wouldn't call it a collapse, but I'd call it a downturn"
If you are thinking of swapping into dollars now - DONT - hang on as long as possible. Momentum buying will support the trend, and economic fundamentals mean currency movements are a one way bet at the moment (all IMHO of course)
#13
Re: currencies whats going on?
Followed the market closely over the last year and just secured £100K at $2.532 - seeing as its been far lower for the past 6 months am really happy with this!! Did estimates of various costs at $2.4 so just got a bonus of $13000!! Don't care what happens now - Couldn't wait any longer. Hope to go to Brissy in June? The whole exchange rate thing is real pain in the arse. I thought the recent increase wass manily due to interest rate rise - HIFX mentioned gold and China as being main influence at the moment. Good luck to you all that are aiming even higher....
#14
We exchanged at a grim $2.32, we lost the price of a brand new 4 wheel drive. Shit happens You jammy gits
#15
Forum Regular
Joined: Apr 2003
Location: Perth bound July 04
Posts: 70
Just found this quote on yahoo:
"The Bank of England publishes its latest quarterly economic assessment next Wednesday" (19th May I think) "with forecasts that are likely to give clues as to whether another interest rate hike is likely before an inflation report in August."
The outcome of this report might be an indicator as to whether or not buying AUD now is the way to go. If another hike is on the cards - suspect I'll be holding fire.
There's an expected hike in US interest rates in June. Not sure how this will impact GBP/AUD rate - any thoughts?
"The Bank of England publishes its latest quarterly economic assessment next Wednesday" (19th May I think) "with forecasts that are likely to give clues as to whether another interest rate hike is likely before an inflation report in August."
The outcome of this report might be an indicator as to whether or not buying AUD now is the way to go. If another hike is on the cards - suspect I'll be holding fire.
There's an expected hike in US interest rates in June. Not sure how this will impact GBP/AUD rate - any thoughts?