Exchange rates reversal - what to do?

[guspjmh]

We arrive on the 9th, and although we have exchanged some money, the rates have just been getting better and better, so we've been holding fire on transferring the bulk of it - we have enough to keep us going for a good few months. However, in the last few days we have seen the GBP/AUD reverse from almost $1.87 to around $1.82. Not sure whether to buy now or if this is just a blip, and keep holding for a couple of months longer.

 

Any experts on hand to offer advice?

 

Cheers!

 

Gus

[Anne B]

I reckon it's a blip (just my opinion though). Many people think the aussie dollar will drop further over the next few months. Apparantly forex traders have been buying the AUD today because it was cheap, but volumes are very low as lots of people are still on holiday, making the exchanges volatile. I would wait and see what it goes on Monday/Tuesday when everyone is back from their holidays. I'm not an expert though - the currency markets are often beyond logic - one day they go up and one day they go down. Still at current rates it is much much better than earlier this year when the rate dropped to A$1.45 to £1.

[guspjmh]

I reckon it's a blip (just my opinion though). Many people think the aussie dollar will drop further over the next few months. Apparantly forex traders have been buying the AUD today because it was cheap, but volumes are very low as lots of people are still on holiday, making the exchanges volatile. I would wait and see what it goes on Monday/Tuesday when everyone is back from their holidays. I'm not an expert though - the currency markets are often beyond logic - one day they go up and one day they go down. Still at current rates it is much much better than earlier this year when the rate dropped to A$1.45 to £1.

 

Yeah, on our reccie we bought at a rate of $1.43 in April! We got back and it has rocketed ever since. I just don't want to cash in if there is a lot of improvement still to be made, as it is effectively throwing thousands of dollars away!

[Guest vikkiann]

I transferred money back to my sister 2 weeks ago and couldn't believe it was 1.82. We got 1.6 when we moved here!

[guspjmh]

That must be annoying looking at the rates now Vikki!

[minty]

No point in worrying about it. Was 1.6 when we came but then I never had to do ILETS and the new visas seem slower for trades as well. Certainly less trades getting out. More jobs around then so swings and roundabouts.

 

There's no right time, just your time.

[Diane]

Is now the time to mention it was 2.5 when we came out? It has been going down mostly since then, although did blip up to that a year or so afterwards - I remember my OH setting his alarm and getting up at 2am to move some money over when the rate he'd been waiting for was hit!

 

Swings and roundabouts though - the interest rates here are higher, so it might just be a matter of biting the bullet and moving the money over here into a term deposit - a few months of 4% interest soon makes up for a couple of points on the exchange rate.

[zebedee]

You can drive yourself mad thinking about it - we moved all of our remaining money over 6 months ago when it was 1.56 so we could put a deposit down on a house. Could be kicking myself but then think about how much money we've (sorta) saved by paying a home loan rather than renting and then it's all okay.

 

"There's no right time, just your time."

 

So very true.

[Guest MandiMR2]

We arrive on the 9th, and although we have exchanged some money, the rates have just been getting better and better, so we've been holding fire on transferring the bulk of it - we have enough to keep us going for a good few months. However, in the last few days we have seen the GBP/AUD reverse from almost $1.87 to around $1.82. Not sure whether to buy now or if this is just a blip, and keep holding for a couple of months longer.

 

Any experts on hand to offer advice?

 

Cheers!

 

Gus

 

We're in a similar situation to you, planning on arriving in Jan/Feb & are constantly looking at the exchange rates to determine if/when to make transfers. I think if you have enough cash to hold out its worth the gamble. Can I ask who you used for your transfers? We have our funds with HSBC here & was just thinking of opening an account in Adelaide, keeping the one here & just transfer as & when the time feels right, although I know I need to compare the fees etc.

PS best of luck with the big move!!

[Guest Guest75]

You will go mental,mad,bonkers worrying about this!!

 

Save your money and buy a time travel machine instead..............

 

 

1999/2000 is an excellent pick.

 

Just a cent under $3 was seen.................

 

I can see you biting the back of your hand and swearing now.............

 

We did a fire sale,liquidated anything we were not sitting or sleeping on.

 

People though we going bankrupt............ We are going "You beauty!!!!!!!!!!!!!!!"

 

 

Once here......it's happened and you cannot change it.

 

Looking back is a bitter pill....................... Optimism is sweeter.

[guspjmh]

We're in a similar situation to you, planning on arriving in Jan/Feb & are constantly looking at the exchange rates to determine if/when to make transfers. I think if you have enough cash to hold out its worth the gamble. Can I ask who you used for your transfers? We have our funds with HSBC here & was just thinking of opening an account in Adelaide, keeping the one here & just transfer as & when the time feels right, although I know I need to compare the fees etc.

PS best of luck with the big move!!

 

 

Been looking at a few transfer companies like moneycorp, ukforex etc. I certainly wouldn't use your bank, as their rates tend to be awful.

[TonyD]

Been looking at a few transfer companies like moneycorp, ukforex etc. I certainly wouldn't use your bank, as their rates tend to be awful.

 

I agree with Gus Mandi, I also banked with HSBC in the UK so joined them here thinking there'd be benefits - there isn't and they charge a fortune so I'll be getting a new account with Commonwealth who I understand are much better suited to my needs. A friend who has been here 4 years gave me the lowdown last night at a barbie but the wine, beer and sun yesterday at his house have clouded my memory this morning.......I'll have to have another chat with him with coffee and not alcohol!

[NicF]

Been looking at a few transfer companies like moneycorp, ukforex etc. I certainly wouldn't use your bank, as their rates tend to be awful.

 

Open accounts with several of the forex companies and when you come to move your money phone each of them for a quote. If you are moving a reasonable amount and they each know you are getting quotes from other places you will get a better rate. We only opened an account with Moneycorp but got a (slightly) better rate just by my OH asking if the first rate they quoted as the best they could do. You will probably need to open accounts before you leave the UK though as I'm not sure you can open them from here.

[Guest MandiMR2]

Thanku, I will definitely look & compare, although I think HSBC's transfer fees of £9 for up to £2k and £17 up to £10k sounds pretty reasonable, plus one benefit for me staying with them is I will continue to receive a good rate of interest on my savings, including my ISA, although admittedly I've yet to look into the savings rates in Oz, do they have ISA's or similar?

[Diane]

John from Moneycorp posts on here and is a site sponsor - he does a no-fee deal for PIA members as well, so worth getting in touch with him http://www.pomsinadelaide.com/forum/member.php?u=6280

[NicF]

Thanku, I will definitely look & compare, although I think HSBC's transfer fees of £9 for up to £2k and £17 up to £10k sounds pretty reasonable, plus one benefit for me staying with them is I will continue to receive a good rate of interest on my savings, including my ISA, although admittedly I've yet to look into the savings rates in Oz, do they have ISA's or similar?

 

The fees may not sound too bad but the rate you will get to exchange the money is likely to be less than you would get with a forex company. If you are only moving a couple of thousand pounds this might not make much difference, but when you are moving more like £50k or £100k it can be a difference of hundreds, or even thousands, of dollars. HSBC are not a big bank in Adelaide - they only have one branch that is in the CBD - and there is no benefit from having a UK account and an account here in Australia. I would highly recommend researching this area further before committing to a particular course of action.