stewe12345 Posted February 16, 2010 Share Posted February 16, 2010 Whats happening to the exchange rate $1.73AUD to the £1. Why is it getting so bad?? Will it continue to go down or back up in the near future?? I what to transfer money over to Oz in the next couple of week but this is the lowest rates I have seen. Link to comment Share on other sites More sharing options...
davet19650 Posted February 16, 2010 Share Posted February 16, 2010 1.73 thats better than i have just been quoted 1.68 best i could get thomas cook Link to comment Share on other sites More sharing options...
Guest lindalou Posted February 16, 2010 Share Posted February 16, 2010 1.73 thats better than i have just been quoted 1.68 best i could get thomas cook If your transfering uk bank to Oz bank HIFX have good rates. The rate has gone up a little from this morning. A few weeks ago it was $1.80 early last year it was around $2.00. If your just changing money for a holiday ive been told Nationwide has the best rates. Just open a account and bank with them and use your debt card fee free over in Oz. Link to comment Share on other sites More sharing options...
Guest vixpinkbabe Posted February 16, 2010 Share Posted February 16, 2010 I know!! I need to make an international cheque in the next few weeks and PRAYING it goes up again! So depressing. Link to comment Share on other sites More sharing options...
Afro Developer Posted February 16, 2010 Share Posted February 16, 2010 It was climbing last week. Then the announcement about Greece defaulting on it's debts and the Euro wobbling seemed to impact on it. Dropping from 1.82 to 1.76. The pound hasn't risen against the Euro but instead seems to be getting dragged down along with it. Link to comment Share on other sites More sharing options...
stewe12345 Posted February 16, 2010 Author Share Posted February 16, 2010 We are hoping to move over in a few weeks and waiting for the rates to rise again but this is not good. A few years ago it was around $3.00 to the pound. Be nice to see that again. Be happy with $2.00 to the pound. Link to comment Share on other sites More sharing options...
davet19650 Posted February 16, 2010 Share Posted February 16, 2010 Hi Lindalou Have an account with the nationwide they come out at 1.66, lloyds tsb 1.64. Going for our reccie in 3 weeks gonna change now before they go any lower with thomas cook unless anybody can come up with somewhere better cheers Link to comment Share on other sites More sharing options...
gemjay Posted February 16, 2010 Share Posted February 16, 2010 Until the UK interest rates rise and the news coming out of the UK improves the short term outlook is not good for sterling, Australian interest rates are set to rise further which will add more strength to the Aussie $, China is slowing its economy which will affect the Aussie $. UK inflation has just come out at 3.5% which if this rate is maintained I believe UK interest rates will have to rise maybe after the election. IMO:biggrin: Link to comment Share on other sites More sharing options...
stewe12345 Posted February 16, 2010 Author Share Posted February 16, 2010 Hi LindalouHave an account with the nationwide they come out at 1.66, lloyds tsb 1.64. Going for our reccie in 3 weeks gonna change now before they go any lower with thomas cook unless anybody can come up with somewhere better cheers I would hold on for a couple days and see how it plays. If your not exchanging big money its only few pounds here or there. I cant see it going down much more. Fingers crossed it goes back up. Link to comment Share on other sites More sharing options...
Guest John from Moneycorp Posted February 17, 2010 Share Posted February 17, 2010 Whats happening to the exchange rate $1.73AUD to the £1. Why is it getting so bad??Will it continue to go down or back up in the near future?? I what to transfer money over to Oz in the next couple of week but this is the lowest rates I have seen. Hi stewe When looking at the exchanges rates, in very simple terms, the state of the respective countries economies should be taken into account as this affects the currency. Australia Australia never officially entered recession and their financial institutions (such as banks) have remained relatively strong amidst the global economic crisis. Recent positive news/information has been released which boosts the Aussie dollar. For example, this week, The Reserve Bank of Australia made clear that further interest rate rises would ensue in 2010 if the economy continued to grow solidly. Also, Australian labour market data in January came in well above forecasts, as figures released on showed a sharp rebound in business confidence in January – all this positive data leads to confidence and overall helps the currency! UK As we know, the UK has been attempting to recover from one of the worst recessions in a generation. Throughout the recession, sterling has struggled and generally been weak. We have, as of last month, emerged from recession (just!), however sterling continues to struggle against all the major currencies and it is expected to remain weak for the foreseeable future. Focus is now turning to the up-coming UK general election and hopefully following that we can have some clear direction on fiscal policy, which would likely boost the pound. Even then, the economy is fragile and it will likely be a long recovery ahead. Your own situation If you have an international money transfer requirement, you should consider using a specialist foreign exchange company (as opposed to your bank). A specialist foreign exchange company, normally, will offer you a better rate than your bank. They will also monitor the currency markets on your behalf, so you could take advantage of any favourable movements. Please let me know if I can help with regards to your personal situation. Thanks John Link to comment Share on other sites More sharing options...
Guest chris_mac Posted February 17, 2010 Share Posted February 17, 2010 Not withstanding, the Australian economy is soley dependant on China's buying power which only this week applied the brakes on spending to avoid their own economic down turn. It was stated today that china has slowed down its own economy to release steam slowly rather than the bubble bursting which will have a massive impact in the forth coming weeks on the strength of the ozzy dollar and the GBP. Watch this space! Link to comment Share on other sites More sharing options...
Guest Guest31881 Posted February 17, 2010 Share Posted February 17, 2010 Is it my imagination or is it every time some good financial news comes out of the UK, the Governor of the BOE talks it down, I do not think they want £ to rise as it keeps UK exports cheap. perhaps its just the way I have percieved it ? Link to comment Share on other sites More sharing options...
Guest The Ropey HOFF Posted February 17, 2010 Share Posted February 17, 2010 Is it my imagination or is it every time some good financial news comes out of the UK, the Governor of the BOE talks it down, I do not think they want £ to rise as it keeps UK exports cheap. perhaps its just the way I have percieved it ? Hi Colin, i agree with what you say about the putting down of good financial news from the uk and the bit about our exports, yes they are cheap, but we can hardly export anything these days because most of our industry has disappeared. We used to employ millions of people in textiles, steel industry, coal mines, car manfacturing, engineering etc, but with cheap imports being allowed in from countries that have slave labour and low paid workers, our once great world leading industries are almost non exhistant. It's a shame really because now more than ever its better and cheaper to buy British if you live abroad due to the slump in the pound and if we did sell abroad like we did in the 70's and 80's we would have been the first country to come out of recession instead of the last. jim Link to comment Share on other sites More sharing options...
legoman Posted February 17, 2010 Share Posted February 17, 2010 shocking at the mo, i going to perth in april for 10 days to finalise details for our move back later in year, not be too affected for that trip but house sale equity would be hit heavy Link to comment Share on other sites More sharing options...
Afro Developer Posted February 17, 2010 Share Posted February 17, 2010 Hi Colin, i agree with what you say about the putting down of good financial news from the uk and the bit about our exports, yes they are cheap, but we can hardly export anything these days because most of our industry has disappeared. We used to employ millions of people in textiles, steel industry, coal mines, car manfacturing, engineering etc, but with cheap imports being allowed in from countries that have slave labour and low paid workers, our once great world leading industries are almost non exhistant. It's a shame really because now more than ever its better and cheaper to buy British if you live abroad due to the slump in the pound and if we did sell abroad like we did in the 70's and 80's we would have been the first country to come out of recession instead of the last. jim Sorry, I disagree. Just because there's no noticeable manufacturing base doesn't mean the country doesn't export. The UK is the worlds 9th largest exporter (10th if you include the EU as a country). https://www.cia.gov/library/publications/the-world-factbook/rankorder/2078rank.html. A weak pound creates more exports, more profits, more corporation tax and hopefully more jobs. The only reason it's an issue amongst people here is because we're looking to convert our pound into another currency. As a whole I think it's a sensible tactic to bring the economy into life. It's just unfortunate it's people on PIO who will suffer. Link to comment Share on other sites More sharing options...
Guest The Ropey HOFF Posted February 17, 2010 Share Posted February 17, 2010 Sorry, I disagree. Just because there's no noticeable manufacturing base doesn't mean the country doesn't export. The UK is the worlds 9th largest exporter (10th if you include the EU as a country). https://www.cia.gov/library/publications/the-world-factbook/rankorder/2078rank.html. A weak pound creates more exports, more profits, more corporation tax and hopefully more jobs. The only reason it's an issue amongst people here is because we're looking to convert our pound into another currency. As a whole I think it's a sensible tactic to bring the economy into life. It's just unfortunate it's people on PIO who will suffer. Hi, the figures have surprised me, but if they are correct which i am not saying the arn't, just why is the country struggling to come out of recession. It still a fact the successive governments have let cheap imports flood into the country, costing hundreds of thousands of jobs in industry, decimating, textiles, steel and other industries. Because our economy is struggling to come out of recession, the pound is weak and we who are thinking about emigrating are massively out of pocket, myself to the tune of about $120,000 dollars. I hope we come out of recession soon and the currency situation gets back to normal. jim Link to comment Share on other sites More sharing options...
legoman Posted February 17, 2010 Share Posted February 17, 2010 the difference in the media cultures are clearb today, news says unemployment is down for the 2nd successive quarter. uk papers say slight decrease in unemployment'' unemployment up' aus papers would say UNEMPLOYMENT DOWN! FUTURE LOOKING GOOD, BOOM TIMES FOR 20210. The uk media love a good downtrodden uk story, and of course never let the truth get in the way of a good story. hopefully people on PIO are too clever to rely on the press to affect decisions they make regarding the move. Link to comment Share on other sites More sharing options...
mrcatania Posted February 20, 2010 Share Posted February 20, 2010 $1.721 this morning. Happy Days! 50.7 cents down on this exact time last year. In a nut shell, for every GBP1000 you change, you will get $507 less than you did last year. This is a joke. I for one did not come here to lose $149,565 just because of an unheard of exchange rate thats been festering since July09. I don't know what anyone who is just starting to move out here has budgeted on and what they are doing etc. I suppose the only people who may be better off are those just starting the whole process and are budgeting on this current rate, they may be winners years down the line I suppose. the rest of us though...... it will drive me back to the UK. Ultimatelly at some stage of the game we have all got our pounds in one basket, taken the exchange rate into consideration, mentally changed it into $$ and asked ourselves ' Can I afford to do this, what do I get for my money....Oh look, you get a lot more bang for your buck'. Link to comment Share on other sites More sharing options...
Guest MrStocky Posted February 21, 2010 Share Posted February 21, 2010 the pound is weak and we who are thinking about emigrating are massively out of pocket, myself to the tune of about $120,000 dollars. I hope we come out of recession soon and the currency situation gets back to normal. jim I am $330k down from a currency deal a could've done in October 2008!!! :shocked: Wasn't sure I was going to come out to Oz at the time so thought it was going to be a risk. Now I am out here, looks like I'm here to stay & kicking myself for not grabbing the rate at the time. My sister did but she was coming out in Feb 2009 so timing was right for her. In my view the recovery will be a long way off. The outcome of the general election will have an affect, if its hung parliament like some people think the rate will get worse! Interest rates will have to go up in the UK, its just a question of when. In the meantime its a case of wait & see. What happens with China will be interesting, will they turn off the tap of resouce buying as they've built up huge reserves - if they do that'll be interesting for the Australian economy. Interest rates are likely to continue to rise in Australia to the end of the year. I think things will get worse before they get better, I may well consider buying pounds if it gets even worse. My UK financial advisor is now looking at what to do with my capital in the UK ... alternative strategy needed! Looks like life without a mortgage here ain't gonna happen! For now anyway!! Link to comment Share on other sites More sharing options...
legoman Posted February 21, 2010 Share Posted February 21, 2010 my visa expires 2012, can extend the time move a little while but no gurantees on how quick the house sells, very worrying. didnt expect to have a bigger mortgage there than here in the uk. rentals costs gone up n up too. never seen the rate of exchange so low Link to comment Share on other sites More sharing options...
Guest boa Posted February 21, 2010 Share Posted February 21, 2010 Are you referring to Australia there because you certainly could be. Almost everything we buy apart from most food comes from China or in the case of cars most come from Korea or Japan. One of my boys asked me sometime ago 'why is everything made in China ?' It's because they make it for peanuts and we as consumers want to pay peanuts. It still a fact the successive governments have let cheap imports flood into the country, costing hundreds of thousands of jobs in industry, decimating, textiles, steel and other industries. jim Link to comment Share on other sites More sharing options...
Guest boa Posted February 21, 2010 Share Posted February 21, 2010 I have never understood why people are of the belief that the UK isn't a major exporter, there seems to be a belief that the British make nothing which is far from the truth. Sorry, I disagree. Just because there's no noticeable manufacturing base doesn't mean the country doesn't export. The UK is the worlds 9th largest exporter (10th if you include the EU as a country). https://www.cia.gov/library/publications/the-world-factbook/rankorder/2078rank.html. Link to comment Share on other sites More sharing options...
Guest gratom Posted February 21, 2010 Share Posted February 21, 2010 Chris mac's point is right on the ball the chinese gov't has twice ordered their banks to increase their capital reserve ratio's and therefore damp down credit creation,Incidentally,the greece gov't is carrying out a bond issue/sale this week--may be interesting to see if they sell[and at what price].My guess is that it will be a stitch up in that if they don't sell then the rest of the eurozone will quietly pick them up--and then say everything is ok.Supposedly they have set aside 22-30bn euro's to cover greece's woes--this has been done discretely so as to placate the furious German voters Link to comment Share on other sites More sharing options...
sgperry Posted February 21, 2010 Share Posted February 21, 2010 hi Helen and Mr Stocky, have you considered transferring your sterling to an Aussie bank when you move over and just leaving it there in sterling until the rate improves?? Bearing in mind that it might take a year or more, I guess. I spoke with my father about this the other day (I have similar concerns to you both, given we are due to move there in July) and apparently if the funds are the proceeds from your main home in the UK then you won't pay any tax in Oz on the (hopefully!) eventual currency gain between "now" and when you do exchange it. I believe the only tax you pay is on the interest made on the capital sum you invest. I'm no tax expert though (but he consulted his tax accountant in Sydney) and naturally you'd be wise to get advice on it, but it might be an option?? Without doing the maths, it "feels" like a more sensible route to pay tax on interest than lose out on currency x/r, though I guess it depends on how much money is involved and the rate of inflation in Oz, house price rises and so on. Here's an extract from an email I received from St George Bank in Oz last week about it: There is a Currency Account available to Personal Customers. This account is structured to accommodate the warehousing of personal funds. Minimum opening balance is AUD 150,000 equivalent and transactions must be of a minimum amount of AUD 50,000 equivalent. Access to the Currency Account is via personal contact with St George Treasury-transactions can be affected with an authorised letter or fax. The Currency Account has no monthly fees, only a AUD 10.50 transaction fee. The Currency Account pays call account interest on minimum balances of AUD 10,000 equivalent and above. if you are able to swallow the pain of exchanging just enough sterling to get by on when you get to Oz until you get jobs, I suppose - like we are thinking of doing - you could rent for a year or so, paying Aus $ costs out of Aus $ income and just let your sterling nest egg regain some sanity. Think of it as a 12 month working holiday but instead of renting out your home here you convert it to cash and put it in the bank. Again, I'm no economist, but IMHO the Aussie economy is overheating and is at some point due a correction - which ever way you cut it, at some point their housing bubble will burst. Prices are verging on the silly side and the level of consumer debt is crazy. As I've said elsewhere, from speaking with family and friends there at the moment, it feels like what was happening in the UK about 4 years ago. Banks lending consumers way too much, etc etc. It will all end in tears, the question is when. So it could be a good personal strategy to hold off from buying in Oz until it does, then convert your sterling into dollars and buy there cheaper (and with more money for your sterling.) That's my thinking, anyway - if anyone can see great holes in this, please let me know. Link to comment Share on other sites More sharing options...
Guest gratom Posted February 21, 2010 Share Posted February 21, 2010 Right on the button sgperry---not a question of if,but when.Any bets??and what will be the final straw that breaks the camels back?? Link to comment Share on other sites More sharing options...
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