Gazzap

ME!

Wheeler-Jones

I think (and hope) that you will find the recent drop it due to the people all buying AUD thanks to the better exchange. Give it a week or so and it will be back on track towards 2.4 (I reckon).

BATS666

you hope !!
i think the current fluctuations are much more to do with unstable markets adversely effecting carry trade currencies, like the AU$, than people buying AU$ on the better exchange rate. If things hadn't stabilised over the last coupla days, the AU$ would have continued to fall. No telling how long it'll last for tho.

Gazzap

Isn't this (latest move) more to do with £ dropping relative to US$, because of our higher than expected inflation?

BATS666

Err, nope !

Gazzap

OK, I thought it had something to do with this....not that I really understand how one thing effects another re. exchange rates.

"Sterling falls as UK inflation spikes to 16 year high

The Pound sank across the board on Tuesday morning after British consumer prices rose to their highest level in 16 years in August and more than double the Bank of England’s inflation target, prompting the Governor, Mervyn King to publicly explain why prices have risen so high. The Office for National Statistics revealed CPI was 4.7% higher last month than a year ago from 4.4% in July and recording the highest level since April 1992...."

terrier1000

wish i had exchanged some aswell for my holiday in 2 weeks, but thought i'd wait and see if it goes any higher. :curse:

Kalenge

You can't exclude people buying Aussie $ out of the equation - the buying of any currency is exactly what sets its value.

There is also infinitely more buying and selling of Aussie $ going on by investors than there are by the general public. Savy investors (and those with the nerve) will be buying and selling like crazy as huge amounts of profit can be made in a very short time. It's not everyday that the market fluctuates as much as this. The Aussie dollar has risen and fallen by almost 10 cents each day over the last few days!

I picked a slot at the high end and jumped in. It's risen a couple of cents above and fallen a lot below, but that's always the case. Set a realistic value that you will be happy with and go for it when it hits that value.

Gazzap

But that is the BIG question- what is that realistic value? The other day, it didn't look like 2.4 was out of the question...

You either try to do some research, and watch and learn, or better off totally ignoring the whole thing, buying $ when you need it, and hoping for luck, as far as I can see.
Probably the 2nd is no worse than the 1st option

debbie76

just came home from work and see exchange rate is in free fall again gutted whats going on:curse:

EvannTel

You must be planning a very expensive holiday for it make a significant difference!

bcworld

Financial markets reacting favourably to US plans to rescue their banking system = a couple of good days on the stock markets. Appetite for risk is returning and so buying of aussie dollars. Could all be completely misplaced optimism and rate may end up going back up again........or we've seen the worst of the financial problems now and aussie dollar will continue to strengthen against the pound.

terrier1000

not really

got all my transfers sorted, just need to pay for a couple of day trips in cairns and maybe one in sydney.

Kalenge

I don't see the reasoning that just because the rate rose to 2.3 very quickly that it will go to 2.4?

If it was an isolated situation in Australia or the UK that was affecting the rate then that might be the case. However, it's instability in global markets that's fluctuated all currencies. The UK £ is as much affected by all of this as the Aussie $ - and possibly more so.

Over the last few days the $ tended to lose value during the Aussie trading day and the £ lost value during the UK trading day. It's extremely difficult to predict what's going to happen, but it is possible to pick up on trends like this, and also to react on significant news releases e.g. the US Fed announcing a rescue package for AIG.

Gazzap

Isn't hindsight a wonderful thing.