Wed 25th July 2012
Planning on buying the Australian dollar? That might be because you intend to emigrate to the antipode nation, or perhaps import Australian products. In either case, it’s vital to get the best foreign exchange rate when you buy Australian dollars, to maximise your bang for your buck.
How do you do that? Well, here I want to outline some things to keep in mind when you do so.
1. Look to China.
Obviously, you should see how the Australian economy is performing to determine which way the Aussie dollar will go. This is the same as all countries.
Unique to Australia though, is the fact that China’s economic data also has a strong impact on the Australian dollar. If China is shown to be expanding, the Australian dollar will tend to gain. And conversely, if the Asian tiger is on the ropes, the Aussie is inclined to fall.
This is because, unlike other countries, Australia is heavily dependent on China for economic growth. China is effectively fuelling Australia’s mining boom in that, as it expands, it requires the coal and iron resources that Australia has in heaps.
So strong is this Chinese demand, it’s expected to contribute some AU $300 billion to the Australian economy in 2012/3, almost single-handedly shielding Australia from the global slowdown. Hence, if China slows down, that will hurt both Australia and the dollar too.
2. Look to Europe.
In addition, you should look to Europe when deciding to buy the Australian dollar. This is because the Eurozone debt crisis encompasses the world and, though Australia’s economy is fairly disconnected from that, it nonetheless affects global confidence.
Hence, for no other reason than the debt crisis is happening, confidence among Australian business and consumers has gone down. Appetite for relatively volatile investments (like those in Australia) has gone down. All that can have a downward effect on the Australian dollar, depending how bad the news is on a given day.
3. Look at how the dollar has done recently.
To maximise your Australian dollar exchange rate, you need to know whether the rate you’re getting is good or bad compared to where it’s been. To do that, use a tool like Google Finance. Just type in the currencies you want to change (that could be pounds to Australian dollars, hence GBPAUD) and hit return.
You’ll then receive a graph listing both the latest exchange rate, plus those extending back a decade. You can then decide whether the current exchange rate is good, or whether you’d prefer to hang on.
4. Look for specialist guidance.
Last but not least, it pays to seek out specialist guidance when you buy Australian dollars. This is because specialists (foreign exchange brokers, such as ourselves) are already familiar with the points I’ve mentioned above. We’re hence are in a strong position to guide you through your transfer.
Get in touch
To receive a free quote for when you buy Australian dollars, call us on +44 (0) 1494 671800 or email email@example.com. You can also visit us at foreign exchange broker Pure FX. We’d be delighted to help.