Highest point in almost 3 years. Buy now or wait? Do you think it will go to 80c? Further?
Is It Time to Buy USD?
mick123 on 07/01/2021 - 13:30
Comments
There's a few things at play here
Covid is still rife in America, you'd be betting on the success of the vaccine. (-weakness in the economy overall weakening of the American dollar)
The Fed Reserve is still stimulating the stock market creating a false economy (-The economy is definitely not running stronger than it was pre-covid) - (weakness in the economy overall long term weakening of the American dollar if the bubble bursts)
Biden has control of both the senate and house or reps (+strengthening in the economy overall strengthening of the American dollar)
Australia doesn't really want it to go much higher than 80c as it affects our export market competitiveness and the cash money that the iron ore companies are swimming in.(+depressing the AUD overall, artificially strengthening the American dollar)
Australia is currently riding on the boom of China's demand for Iron Ore (+Strengthening the Australian economy and the AUD), weather this can be sustained into 2021 however is anyone's guess, problem is lack of alternatives for 1-2 more years mean that they'll pretty much control the market in Iron ore for now.
It's a mixed bag and personally i feel the AUD has a bit left to run (unless they enact market controls on the Australian dollar), post GFC the AUD went to parity and it very well could again. It seems we're better protected from economic downturns than big lumbering economies such as America. Also Iron ore helps
Buy now or wait?
Why to either? Why not sell?
Need to buy em first :)
I’ve been pondering the same question.
I plan on going to usa one day for travel. So I think it’s not unwise to accumulate a little as it rises. Whether you think 78c is good or 80 or 90 is up to you. No one can tell where currency will go.
I think the AUD will rise. The US hasn't stopped stimulus measures and the democrats will anoint Joe with some more spending.
CBA charges 1% + a lower exchange rate… any alternatives for exchanging large amounts of AUD?
Check out Currency Fair
Transferwise.
Get some stablecoins and earn interest while waiting for the border to open.
https://www.marketwatch.com/story/crypto-prices-jump-after-u…
As an investment, or to purchase something using USD?