GBP/AUD Monthly Update

[Guest Windsor2]

As requested by a number of Pomsinoz regulars here's a brief update on what's happening in the currency markets.

 

We saw GBP/AUD jump higher in the beginning of October as investors dumped higher-yielding currencies and riskier assets - spooked by fears of a global economic slowdown and pessimism about weather the US governments bailout plan would really unfreeze the financial sector; GBP/AUD rocketed a remarkable 42 cents to a 5 year high.

 

The Australian dollar began to stabilize after the Reserve Bank of Australia stunned investors with its biggest interest rate cut in 16 years; a dramatic attempt to insulate banks, households and firms from a meltdown in the global financial markets. The central bank cut its benchmark rate by a full 1.0% to 6.0% following its monthly policy meeting, a reduction twice the size expected and the biggest rate cut since May 1992. The currencies losses were further shown as commodities from oil to base metals all lost ground. on

 

In response, the Australian government announced a AUD10Bn stimulus package to cushion the economy away from the credit crunch, just days after Canberra offered guarantees on the country’s AUD600-700Bn in bank deposits – however, it was unable to hang onto gains, again due to concerns the global slowdown would hurt the demand for their natural resources.

 

Going forward most industry analysts expect continued volatility. No surprises there!

 

Whilst FX isn't the most thrilling of subjects, as soon as you make the decision to emigrate you should begin thinking about your foreign exchange requirements. The sooner you begin to think about your money transfers, the more likely are to make your money go as far as you do.

 

Best Regards

 

Mark Bodega

Director - HiFX

[Guest Working to fish]

Hi Mark

Firstly i would like to say what a very good company hifx are, when exchanging money for customers. I would just like to point out though one thing that we were not aware of - we transfered money while in the uk and everything went perfectly well.

Now the point i would like to make is that we were watching exchange rate very closely a few weeks ago, and if i remember rightly it reached 2.7 dollars to the pound for a short period. As you can imagine we were jumping for joy, being here in oz. But this is where the problem arose for us. We did not realise that we needed to set up a separate account here in oz with hifx (to avoid people money laundering) to exchange further funds from the uk.

So, alas, we were not able to get the 2.7 at that time as we had to wait for our account to be checked and activated with hifx australia.

Just thought this might be valuable information to anybody thinking to doing the same.

 

 

eddie

[Guest OldiesRUs]

Good point Eddie. I hadn't thought about that.

 

So, Mark, can we set up an account with HiFX in Aus before we go?

 

Agree with Eddie's comments about great service by the way.

 

Jean:wubclub:

[Guest Windsor2]

Eddie

 

Thanks for the feedback. I'll speak to the Migration Team here and make sure that in future it's made much clearer that due to our Aussie and Kiwi offices being regulated by ASIC (Australian Securities and Investments Commission) clients who wish to trade when they arrive in Oz have to register there as well. One thing we have done is allow UK clients to sign both sets of terms and conditions when they register in the UK via our website - but this recent change hasn't helped you.

 

My apologies for the inconvenience and rest assured we will act on this. Thanks once again for taking the time to give us the feedback.

 

Best Regards

 

Mark Bodega

Director - HiFX