Big Galah

What it's done in the past is no indication of what it's going to do in the future. But...

I think it's better to be buying STG (sterling) with AUD (aussie) right now than the other way around. It might be best to change only as much as you need in the short term and hope the rate improves (currently 2.33) in favour of STG in the future. If you open an offshore account you can keep the money as STG for as long as you need even after you've moved (or some banks may let you keep your current account open). I've been told the average STG/AUD exchange rate over the last 10 years is 2.45 but I don't know how accurate that is (sort of goes against what I said at the beginning, but anyway).

You can check out XE.COM and maybe save it as a favourite to have a quick look at what the rate is at any time, or HIFX has a graph that you see the historical rates on - as someone said already, your bank/financial institution's buy and sell rates will be either side of this - the difference being their margin. e.g. a couple of weeks ago the rate was 2.379 and due to a mix-up (dealer thought I was selling STG rather than buying - be careful) I got buy and sell STG quotes from HIFX at more or less the same time at 2.399 and 2.365 - their rates vary depending on the amount and, I would suspect, the dealer and if you're prepared to bargain (I'd like to know if anyone's tried this).

In my experience banks give very poor exchange rates - in the above example, buying STG, at the same time ANZ were quoting 2.43 compared to HIFX's 2.399 i.e. for every 10,000 pounds I wanted to buy, ANZ were $310 more expensive.
(No, I'm not rich - just an example).

Personally, I'm tempted to use some of my AUD savings to by STG and hold on for a while and if the rate improves in favour of STG in the next few months switch them back again - though you need to have accounts in both currencies and better still if you can manage them both online (don't have to be with the same bank - I have ANZ and Barclays Offshore). The downside is if you need the money in the meantime and the rate hasn't improved - or over the long term I lose in interest payments, as the STG one pays less.

If you're still with me, I say hold on - 2.33 is at the bottom of the range over the last few years.

Big.

woogle

Yeah that makes sense.
I've just had my pack through from HIFIX to set up an account with them. I have read through most of it & think I will set it up next week.
I was going to leave most of the money from the house sale in a UK account & just move it over when I need it.

Tiawamutu

Not necessarily. We got a higher rate for our reccie in April, as it was 2.30 and we got 2.34, and that was only for £2000.

Depends where you go

SuperSeagulls

I would recommend Tranzfers......all very easy to sort out, with very competitive rates, and it only costs £7 to do the transfer.

SS

Swerv-o

I used Moneycorp (www.moneycorp.com) two weeks ago, and just about caught a nice high rate (2.38) with them. Their service is excellent, and I can't fault them. The transfer process was seamless, and they were quite happy with my payment being a couple of days late when it looked like my bank had loused things up. Also, there were no fees, as the their fees are built into the exchange rate.

Not too sure about where things are going right now. I feel happy that I have bought in with the majority of my money now. If you look at the news, it seems that the UK economy is still heading into really dodgy territory, with a lot of indicators pointing towards a recession. If the problems with the Gas supplies appear as it looks like they may do, then it is possible we may see a three day week in some sectors through the winter. This will have a knock on effect in terms of consumer confidence and a decrease in public spending. Also, the suggestion is tht the BOE may well cut interest rates in the new year, which will also weaken the pound.

On the other side, The aussie dollar seems to go from strength to strength, and there is talk of a future increase in interest rates over there, wicih will further strengthen the dollar.

I think that we may well see some further decreases in the rate over the coming months - maybe back to the lows of the summer, where it reached the mid 2.20's.

When buying currency, you need to do as much research as possible before you commit yourself, then double check it. Try to investigate the things in each economy that influence it. Australia is a commodity economy, so things like mining are important. Also look at the housing markets, as they will give you a good indication as to where the interest rates are likely to head.

Hope this helps,

S

OzTennis

Very good analysis and I tend to agree with your prediction and reasons that the likely short term scenario is a combination of Stg weakness/Aud strengthening. Mention of a 10 year average of $2.45 means nothing, it is what is happening in the respective economies and the world economy presently and in the near future. (BTW I've transferred £'s to $'s @ $3.04 and $'s to £'s @ $1.33 so have seen the full range).

Thanks for the Moneycorp recommendation, I'll check them out. We've used HIFX (excellent) and the Commonwealth Bank (excellent). As you say, do a bit of shopping around. Most of us wouldn't just go and buy the first thing we see in a shop so why do the same with larger sums of money? This forum and the internet in general means there is no excuse not to.

OzTennis



OzTennis

don544

you never learned that theres no need to jump out of perfectly servicible planes ( also perth 2006, visa willing!)

paul_d

I took a cautious approach - I'd be more upset about losing money than missing a gain. I might have taken the chance if the charts and indicators were pointing the right way.

Paul.