Aussie Dollar Drops in Value
Discussion
Monday morning GBP1 = AUD 2.28
Wednesday morning GBP1 = AUD 2.56
http://uk.finance.yahoo.com/currency/convert?from=...
Or the graph for the Yen to take the mess in the UK out of the equation
Monday morning AUD1 = YPY 83
Wednesday morning AUD1 = YPY 69
http://uk.finance.yahoo.com/currency/convert?from=...
http://business.theage.com.au/business/dollar-reco...
The Age / Bloomberg said:
Dollar recovers from 5-year lows
The Australian dollar rebounded from a 10% plunge yesterday after central banks around the world cut interest rates in a bid to ease the worst financial crisis since the Great Depression. New Zealand's currency also rose.
The South Pacific currencies strengthened from their lowest in six years against the yen as the interest rate cuts encouraged investors to buy higher-yielding assets funded in Japan.
''We've now had a round of coordinated central bank easing, at some point that should begin to have a beneficial impact on risk assets and the financial markets,'' said Robert Rennie, chief currency strategist at Westpac Bank. ''If you start to see a wee bit more stability come through in Asian equity markets, the chances of a bit more stability in the Australian dollar is actually quite high.''
The Australian dollar rose for the first time in 12 days, gaining 1% to 66.53 US cents as of 7.27am from 65.85 in late Asian trading yesterday. It slumped to 64.51 cents yesterday, the weakest since September 2003. The currency climbed 1.3% to 66.37 yen, after dropping as much as 12.5% yesterday to 63.75, the lowest since September 2002.
New Zealand's dollar strengthened 1.4% to 60.16 US cents from 59.36 cents late in Asia yesterday. It dropped to as low as 57.92 yesterday, the lowest since September 2003. It bought 59.97 yen from 59.07.
Global Action
The currencies advanced after the Federal Reserve, European Central Bank, Bank of England, Bank of Canada and Sweden's Riksbank each reduced their benchmark rates by half a percentage point. The Bank of Japan, which didn't participate in the move, said it supported the action. Switzerland also took part. China's central bank separately cut its key rate 0.27 percentage point.
Benchmark interest rates are 6% in Australia and 7.5% in New Zealand, compared with 0.5% in Japan and 1.5% in the US, luring investors to the South Pacific nations' assets. The risk in such trades is that exchange-rate fluctuations may erase profits.
Any gains in the Australian dollar may be limited by a government report on employment to be released at 11.30am. The median estimate of 21 economists surveyed by Bloomberg News was for no change in September, after the number of people employed rose 14,600 in August.
''A weaker print would merely pile on a currency that seems incapable of putting up any defense,'' wrote David Watt, a senior currency strategist at RBC Capital Markets, in a research note.
Bloomberg
The Australian dollar rebounded from a 10% plunge yesterday after central banks around the world cut interest rates in a bid to ease the worst financial crisis since the Great Depression. New Zealand's currency also rose.
The South Pacific currencies strengthened from their lowest in six years against the yen as the interest rate cuts encouraged investors to buy higher-yielding assets funded in Japan.
''We've now had a round of coordinated central bank easing, at some point that should begin to have a beneficial impact on risk assets and the financial markets,'' said Robert Rennie, chief currency strategist at Westpac Bank. ''If you start to see a wee bit more stability come through in Asian equity markets, the chances of a bit more stability in the Australian dollar is actually quite high.''
The Australian dollar rose for the first time in 12 days, gaining 1% to 66.53 US cents as of 7.27am from 65.85 in late Asian trading yesterday. It slumped to 64.51 cents yesterday, the weakest since September 2003. The currency climbed 1.3% to 66.37 yen, after dropping as much as 12.5% yesterday to 63.75, the lowest since September 2002.
New Zealand's dollar strengthened 1.4% to 60.16 US cents from 59.36 cents late in Asia yesterday. It dropped to as low as 57.92 yesterday, the lowest since September 2003. It bought 59.97 yen from 59.07.
Global Action
The currencies advanced after the Federal Reserve, European Central Bank, Bank of England, Bank of Canada and Sweden's Riksbank each reduced their benchmark rates by half a percentage point. The Bank of Japan, which didn't participate in the move, said it supported the action. Switzerland also took part. China's central bank separately cut its key rate 0.27 percentage point.
Benchmark interest rates are 6% in Australia and 7.5% in New Zealand, compared with 0.5% in Japan and 1.5% in the US, luring investors to the South Pacific nations' assets. The risk in such trades is that exchange-rate fluctuations may erase profits.
Any gains in the Australian dollar may be limited by a government report on employment to be released at 11.30am. The median estimate of 21 economists surveyed by Bloomberg News was for no change in September, after the number of people employed rose 14,600 in August.
''A weaker print would merely pile on a currency that seems incapable of putting up any defense,'' wrote David Watt, a senior currency strategist at RBC Capital Markets, in a research note.
Bloomberg
pauldc259 said:
I'm delighted with this. I've been waiting for 6 months to bring the proceeds of a house sale over from the UK and bought my dollars last night at just over $2.60.... :-)
Out of interest, who did you use? and is it simple to do?Edited by toomuchbeer on Thursday 9th October 03:35
toomuchbeer said:
pauldc259 said:
I'm delighted with this. I've been waiting for 6 months to bring the proceeds of a house sale over from the UK and bought my dollars last night at just over $2.60.... :-)
Out of interest, who did you use? and is it simple to do?Edited by toomuchbeer on Thursday 9th October 03:35
They were excellent, did as they said and just built any costs into the currency rate so nothing further to pay.
toomuchbeer said:
pauldc259 said:
I'm delighted with this. I've been waiting for 6 months to bring the proceeds of a house sale over from the UK and bought my dollars last night at just over $2.60.... :-)
Out of interest, who did you use? and is it simple to do?Edited by toomuchbeer on Thursday 9th October 03:35
Now would be a great time to bring over the money I have in my house in the UK, it's just a shame there's no chance of being able to sell it for a reasonable price. I think I'll sit it out for a couple of years.
I transfer money each way using www.tranzfers.com.au
$15 per transaction (or the equivalent in £ coming the other way)
I transfer money each way using www.tranzfers.com.au
$15 per transaction (or the equivalent in £ coming the other way)
Fiddlemesticks said:
toomuchbeer said:
pauldc259 said:
I'm delighted with this. I've been waiting for 6 months to bring the proceeds of a house sale over from the UK and bought my dollars last night at just over $2.60.... :-)
Out of interest, who did you use? and is it simple to do?Edited by toomuchbeer on Thursday 9th October 03:35
They were excellent, did as they said and just built any costs into the currency rate so nothing further to pay.
toomuchbeer said:
I'm currently waiting for my house sale to go through in the UK, and fingers crossed it's any time now.
This is very good news for me for bringing the cash over. But I'm not holding my breath, as I'm sure as soon as the house sells, the dollar will be back at 2.00 to the pound.
that's what futures markets are for. Just do a forward. Don't miss the rate because of timing.This is very good news for me for bringing the cash over. But I'm not holding my breath, as I'm sure as soon as the house sells, the dollar will be back at 2.00 to the pound.
I've just cancelled a flight I paid for in Euros about 2 months ago and even with the cancellation charge, have not lost money in AU$. And I've just closed a UK account cos I need cash here - nearly had to do it back in July - glad I could hang out.
On the flip side, a colleague has just seen the cost of his holiday to US and UK go up by 30% - that's a lot when its a family of four.
Any clues as to why AUD constantly yo-yos???
On the flip side, a colleague has just seen the cost of his holiday to US and UK go up by 30% - that's a lot when its a family of four.
Any clues as to why AUD constantly yo-yos???
PomBstard said:
I've just cancelled a flight I paid for in Euros about 2 months ago and even with the cancellation charge, have not lost money in AU$. And I've just closed a UK account cos I need cash here - nearly had to do it back in July - glad I could hang out.
On the flip side, a colleague has just seen the cost of his holiday to US and UK go up by 30% - that's a lot when its a family of four.
Any clues as to why AUD constantly yo-yos???
yep, there is a flight from risk going on at the moment, so the weak currencies are getting hit, not disimilar to a carry trade unwind.On the flip side, a colleague has just seen the cost of his holiday to US and UK go up by 30% - that's a lot when its a family of four.
Any clues as to why AUD constantly yo-yos???
A view from a senior analyst from BNP Paribas - relates the the exchange rate
Why real estate spending could make Australia the new Iceland:
http://www.brisbanetimes.com.au/articles/2008/10/1...
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