Hey Everybody
We are going to the US later this year..
With the AUD the way it is at the moment, we are planning to buy US dollars just in case the AUD drops further.
Whats the best/cheapest way to get US dollars now? Should we go to the bank or one of those money exchange places?
Is there a debit card that we can load cash on that locks in the current exchange rate?
cheers
Note: We are going there with our trusty 28 degrees credit card and Citibank debit card.
Finally a sensible comment on these type of threads rather than the typical unfounded predictions. If anyone truly knew what was going to happen with fx markets they would be unbelievably rich. There is always just as much chance of the dollar going up as there is of it going down, this is the very essence of how the market works.
So yeah, just keep your money in an interest earning account and change it when you go.
@Cluster & Donga
Cheers, will do that.
Less to worry about now too :)
Yes it's a risk but falling resource prices, low interest rates, and a Reserve Bank continually talking down the dollar would suggest that the dollar will fall further. That said markets are volatile and don't always follow logic, and the fall, if any, may be relatively insignificant. If I was in this position and the amount I was taking was large I'd be inclined to buy some US currency now and the rest later - hoping for a small surge in the $A in the interim.
I've found that the majority of my travel costs be on airfares & flights before you travel. (Assuming I have an actual plan).
Since the money exchanges/banks often have rates 3-8c outside the actual XE.com exchange rate, it's usually just worth waiting to get cash when you're there. (e.g. today $au1 = $us0.783 but at CBA it's $us0.743
But you can always hedge your bets & just grab some $us now.
The downward pressure of another interest rate cut to 2% is already priced in by money markets.
http://www.sfe.com.au/content/prices/rtp15sfIR.html
By June markets are predicting it's likely to happen, and certain by September. That can change in an instant however.
Complicating matters are USA businesses that are complaining about the strength of the USD$. Their dollar isn't just going up against ours, it's rising against almost every other currency. The unknown factor is whether there will be any US government interference in the market to weaken the USD$.
Overall I would recommend keeping your money in a 4%pa Australian bank account now and only converting when you need to. I would say it's unlikely the Australian dollar is going to fall much further against the greenback.
My advice is only based on watching the markets over the last 8 years or so. Others may disagree with my opinions. Ultimately, no one really knows what's going to happen with any certainty.