Experience is what you get when you don't get what you wanted. I should have got $$$$ when it was 2.46 but ho hum thats life.

Sticking my wad (ok, wadette) in a high interest £££ account and hoping. Watching the money markets very carefully and twice a day as things are still quite volatile and markets could move quickly. However, i dont know what i would do if there was a steady rise in the AUD$ value - probably just keep all my money in £ and hope that i'm completely wrong about the pending UK economy doom

Things to rememer (in my view, please add/disagree etc!);

1. £ is actually doing quite well - look at US$ rate.

2. Unfortunately the Aussie $ is also doing well.

3. 2007 Elections are around the corner in Oz - this will affect the market but i dont know how yet (anyone??)

Aussie dollar has been at 2.51 within the last year; the thing we need to find out is why it has moved to 2.32 and if these causes could change.

Sending negative karma to the aussie $ (sorry to those wanting to exchange the other way ).

2.29!!!! OMG!!!! Looking at the one-year charts it has NEVER fallen so quickly in so short a space of time. Crying into my pint now...

It's not looking good for the USD at the moment. If they keep cutting nterest rates as expected then the AUD will get stronger. On the other hand, of this sub-prime issue gets worse then the AUD could get weaker - as happened recently.

I read today that even if USD is doomed at some point it will bounce sharply before continuing downward. This should turn the tables for awhile

The rate rise seen three weeks ago is a blip rather than a sustained rate rise and was caused by the problems with the US dollar causing Australian investments to be pulled out. Risky investments usually are the ones to be pulled when this sort of thing happens (as investors are buying Japanese currencies as well). This is the reason why this caused the rate to peak, but very quickly, at 2.55 but for only moments. The Aussie Dollar is quite strong as is the ecomomy which is why the rate recovered so quickly. There will be fluctuations in the market, but it depends I guess on how long someone can wait for the rate to change. If the Reserve Bank raise interest rates in Australia as is possible,this will strengthen the dollar further. I would expect to see fluctuation but not at 2.5 unless another issue hits the economy.

Agree. The USD has problems that's for sure but I expect it will fluctuate. It's a great currency. If I was in the UK now, I would:
a. Be going on holiday to America,
b. Buying property there. There are some big bargains to be had and the fundamentals of their economy are sound.

iceman and amazulu, i now have butterflies in my stomach about whether to cut my losses and hope the rate doent prove me wrong or hang on and wait.

What yoos are saying makes total sense but fills me with dread. However, if the US$ does start making a recovery (i'm not sure it will due to the balance of payments deficit) maybe that could cause the A$ to start a fall again....?

Does that sound like i'm starting to grasp exchange rates or have i got it completely wrong?

im going to exchange what i need for now. then hope and pray over next few months the rates improve.

You've basically got it right. The USD is under pressure - for various reasons. The US has cut interest rates (more than expected) to try and stave off recession. This has caused the USD to fall as investors can make better interst elsewhere - like the AUD. If the US keeps cutting interest rates then the AUD will get stronger.

If you want to be aggressive buy the Yen as this is the currency that is touted as appreciating the most as all of the current situation unwinds.

So, what we need to see is interest rates in Oz drop and interest rates in UK go up. Innit?

Out of interest (pun slightly intended), what are the interest rates in Oz? In UK they are approx 6.17%...

Very risky !!!!

This whole thing is risky!

Keeping my funds in ££££ is risky in that the A$$$ may get stronger.

Transfering my ££££ to $$$$ is risky in that after i do it the A$$$$ may get weaker.

etc Its all just so hard

OH says Uk interest rates are tipped to go down by half percent next month (i think) so that doesn't bode well re the above.

Somethings got to give soon though. Remember that rates go up and down all the time so just be stoical and hope for best. If exchanging now at 2.30 gives you enough for what you wanted to do (i.e. doesn't completely fox things) then worth considering. If on other hand current rate negates the financial benefits of going then might as well wait...

Interest rates are put up to keep inflation in check. The rate of inflation is under the target rate, so it is possible that rates will drop in the UK. There is an interest rate rise tipped in Australia before Christmas if it happens will strengthen the dollar. If on the other hand something happens with the money markets as in the case of the recent US crisis ?? Who can say.....