Money Matters – it’s Yours!

Australia is heavily exposed to China and tomorrow’s meeting of European leaders has been described as the ‘make or break’ for the Euro.

What does this mean for the Aussie dollar?

I get asked daily: ‘What do you think it is going to do?’ and invariably answer, ‘I couldn’t say. I wish I knew, because I would be a billionaire by now if I could read the market. Like everyone else, we only have hindsight when it comes to currency movement’.

FX providers, brokers and retailers are legally prevented from offering financial advice. Unlike other financial product, FX is a live and wildly fluctuating market where the enormous amount of variables makes it a ‘horse race’ with umpteen starters.

Any retail provider who says ‘buy now’ or ‘wait’ is not being honest with you, as they truly do not know what the market is likely to do and should not represent as if they do.

The best advice you can hope for is the two options I provide to my customers:

1. If you need to travel now, the rate is largely irrelevant. You need it now, exchange it now. But get same-day quotes from providers so at least you are getting the best retail deal on that given day. For example, you specifically ask ‘What will US$2,000 cash cost me in total if I buy it today?’ The answer you get should be inclusive of fees and charges, if any, and in this way you very clearly see the best deal, whoever charges you the least.

2. If you aren’t travelling for a while start ‘stockpiling’ regularly. In this way you can spread your rate risk so no matter what the dollar ‘does’ you have been in the market at the time. Over the next six months until your trip if you buy $1,000 dollars a month you have received both the up and the down in the market and also managed your exchange budget more efficiently. Global Travel Cards with no load, reload or unload fees, that never expire, are a great option here because you are applying funds at the flat rate without the fee distorting the figure and you enjoy locked-in fx when you travel.

If you’re up, up and away at Christmas time we wish you safe travels, happy holidays and an adventurous New Year.

Money matters – it’s yours!
Kylie Ryan-Milroy
Atlas Currency & Byron Foreign Exchange AFSL #342627
1300 261 090
www.atlascurrency.com.au

Winner 2011 Import Export Awards in the category of ‘Foreign Exchange Provider’