Strong AUD

[Flashback]

Dollar breaks US89c, hits 18-year high | NEWS.com.au Business

Surely this has to be good news for people buying fares direct from AA.com...

 

[aus_flyer]

It may not make a difference. From what I have observed in the past, prices on AA.com (for non-AA flights) change to accommodate currency fluctuations, so unfortunately no benefit.

 

[Mal]

Even AA flights seem to move around a lot.

I've been monitoring a certain fare pair for the last 3 months. It has varied by around 5% up and down during that time.

AA flights themselves are directly priced based on fuel charges and competition. (the taxes etc tend to stay pretty much the same).

The strong $ is a boon to those who are due to visit the U.S Soon (5 weeks away for me ) and those buying American $ priced goods.

Not so good for American tourists coming over, those who are paid $US salaries or have other huge US interests.

 

[Febs]

http://www.news.com.au/business/story/0,23636,22510551-31037,00.html Surely this has to be good news for people buying fares direct from AA.com...

..and people like me, currently in the US, putting everything on credit card then smiling just that little bit more each day when I jump on the net and check out xe.com.

Cheers,
- Febs.

 

[PPW]

I agree - this is great for me! Recently booked BNE - DPS and DPS - BNE on JQ *Class and paid for the DPS-BNE flight in USD - saved me a over $100 per ticket even taking into account the conversion fees, etc.!

I have also negotiated a good USD price for our accommodation (dealt direct with the hotel and beat the best internet price by a considerable amount - and almost half the best TA price). I am tempted to ring them and ask them to process the payment now!

If the AUD drops by 10c against the USD, then our accommodation will be approx 285AUD more expensive (not taking into account any conversion fees). Is anyone in a similar situation

(BTW, those who are mathematically minded (I am not) could work out the USD cost of our accommodation... :idea: should I put it out as a challenge?)

 

[JohnK]

If the AUD drops by 10c against the USD, then our accommodation will be approx 285AUD more expensive (not taking into account any conversion fees). Is anyone in a similar situation

(BTW, those who are mathematically minded (I am not) could work out the USD cost of our accommodation... :idea: should I put it out as a challenge?)

Based on the assumption that A$1 = US$0.89 and a change of 10c would then equate to A$1 = US$0.79 and you will be out of pocket by A$285 after the change then the cost of your accommodation is ~US$2000.

At present US$2000 is ~A$2247 and if A$ drops 10c then US$2000 would be ~A$2531, so a net change of ~A$284.

 

[Reggie]

And at the quoted 89.11cnets in the article it would USD2009.10, but I would guess you are correct JohnK on the USD2000

Are we nerds:shock:

 

[Keith009]

I hope this maintains at least until my RTW is over.

 

[Reggie]

I hope this maintains at least until my RTW is over.

Mmmmm looking into my crystal ball I see the devils number 666. Oh thats ok its just the number of posts you have at AFF at this exact point in time. Better get another on in QF009

 

[Alanslegal]

If the RBA lifts interest rates, the demand for AUD will only become more enticing and the only way is upward for the AUD..........i'm just hoping the AUD goes up just a little bit more as I'll be in the U.S part Oct-Nov....

 

[Keith009]

Mmmmm looking into my crystal ball I see the devils number 666. Oh thats ok its just the number of posts you have at AFF at this exact point in time. Better get another on in QF009

:shock: :shock: I didn't even realise that my post count read 666! Thanks for the heads up though.

 

[drron]

Well I have certainly taken advantage of it booking several future flights on AA.com.being here in the big apple meant I could wander down to the manhattan office to pay.Got this wonderful agent who was able to get cheaper fares with better EQP earning and only charged 1 $25 fee for 3 itineraries.And then there is the exchange rate.Life is good.

 

[winetraveller]

I'm oh so happy for all you guys that can save a few bucks on flights, but for me, the strength of the AUD (or weakness of the USD, more to the point) is a nightmare, and is for all Australian exporters.

That said I have been doing some shopping and saving a few bucks myself.

The US is becoming pretty cheap outside he major metropolitan areas, I've been spending quite a bit of time in Maine, New Hampshire, Upstate New York, and other places, and found eating out, in good restuarants very cheap.

 

[PPW]

Are we nerds

At the risk of offending - YES! But, importantly, you have brought a smile to my face... JohnK, you were spot on... (Reggie, I am lazy and just assumed 89c!) Also lazy and rounded accommodation up to $2000 even (it is actually slightly less).

If the RBA lifts interest rates, the demand for AUD will only become more enticing and the only way is upward for the AUD..........i'm just hoping the AUD goes up just a little bit more as I'll be in the U.S part Oct-Nov....

I am certainly no economist (though I have a minor in economic ) - Alanslegal, is this likely? Does anyone else have other views?

 

[winetraveller]

I have a Masters of economics (international trade) and I still don't understand it. OK, so I do, but that doesn't mean I can predict it any better than the next man.

The likelyhood is that the RBA will raise rates prior to the end of the year, according to the press today, and the opposite is likely to happen in the US in the near furture. Parity with the USD is not so far away. S&*T.

 

[dajop]

My bet is that the AUD will drop against the USD on October 8/9. I will be leaving for US then, and it seems to drop everytime I go to US or somewhere that hotel prices etc are quoted in USD.

When I went to India mid August, I left Australia with the ER at around 0.825-0.83, by the time I reached my hotel in Singapore it was around 0.815, then woke up about 6 hrs later to head back to airport and it was around 0.8. When I reached our office in Mumbai it was at 0.79 and by the time I checked into the hotel a few hours later it was close to 0.78.

 

[Keith009]

My bet is that the AUD will drop against the USD on October 8/9. I will be leaving for US then, and it seems to drop everytime I go to US or somewhere that hotel prices etc are quoted in USD.

When I went to India mid August, I left Australia with the ER at around 0.825-0.83, by the time I reached my hotel in Singapore it was around 0.815, then woke up about 6 hrs later to head back to airport and it was around 0.8. When I reached our office in Mumbai it was at 0.79 and by the time I checked into the hotel a few hours later it was close to 0.78.

You ought to supply frequent updates of your movements from herein. :shock:

And I meant that in the kindest possible way.

 

[winetraveller]

Looking at the current movement it's likely that AUD will crack .90c today.

 

[serfty]

Could be ...

&

Oz Forex Foreign Exchange | Inter-Bank Spot Rates

 

[littl_flier]

CBA are offering a TT rate of 0.8862 today. Great news for all us travellers, not so good news for the exporters though.

My bet is that the AUD will drop against the USD on October 8/9. I will be leaving for US then, and it seems to drop everytime I go to US or somewhere that hotel prices etc are quoted in USD.

And here is was thinking there was some economic theory behind it all.

Parity with the USD is not so far away. S&*T.

Now that's pretty cool.