What's your prediction on the Australian Dollar?

[marki]

I must say it doesn't stop many from doing it. I am talking more about outback Australia. You find the most sickest people medically in the most remote places. But also you will see the most sickest frail people on cruise ships who should not be there due to very high need medical conditions and also high cost medications. Put a Norovirus through that and many just simply don't make it.

The exchange has killed that option but I never seriously considered that option.

Biggest concern is healthcare. Some of the medication I am on is really expensive. Plus once we are done with IVF the wife will be moving here.

 

[RAM]

Indeed.

Used to be banks did their jobs and assessed people's ability to pay, then loaned based on that risk. Now (well, for most of the last twenty-odd years) they just throw money at anyone with a heartbeat.

Probably 75% of the problem right there.

Unfortunately no, banks have always done the same.

They act in reverse to the stage of the business cycle.

1) When the peak is approaching then they furiously chase market share so that their ranking does not fall. One bank that I know well decided to aim to double their rate of new lending. In the email (leaked) it stated they acknowledged they would see their credit write-offs more than double but that the 'higher' public profile would benefit the business in the long run.

Just COINCIDENTALLY 9 months earlier the senior mgmt's remuneration (read bonuses) had been tied to several items. The 45% weighted one was a complex formula driven by (yes you guessed it) rate of growth of lending. Three years later most of them were gone and the bank's share price was down nearly 40%.

Yes, the mgmt team all got bonuses for the first 2 years in the millions.

2) In early 1986, a few weeks after starting work post-University (and a few weeks after taking out a BRW subscription) I got a phone call from a Melb based bank at the other half of the alphabet.

They were ringing me (not a customer, with my BRW details as I'd used my you beaut work number for the first and only time) to offer me a $500,000 unsecured bank bill-linked line of credit. Bank bills were around 12-13% then (memory..) and I was being offered the great margin of 1.5% above for UNSECURED debt a few weeks out of university.

They informed me (no not a scam) that I had already been approved and did I have a fax number so they could send me the docs to fill out to open a bank account with them.

Similarly the same sort of things happened again (with the Aust banks in 1998/99 and 2002/04 periods.

Market share chasing ALWAYS happens and the senior mgmt from last time have moved on and the new' kids on the block' are eager for their enhanced bonuses.

BTW - my ability to pay was less than 50% of the interest using 100% of my PRE-tax salary. The did not want ANY details of my income - I was pre=approved.

 

[marki]

The Australian dollar, along with a range of currencies, has firmed in recent weeks as creeping doubts about the pace of US Federal Reserve interest rate increases has undermined the greenback.
The greenback weakness is also noted in a reduction in long bets on the US dollar, weekly data from leveraged funds collated by the Australia and New Zealand Banking Group shows.


Read more: http://www.afr.com/markets/yuan-bac...XL4qm3nbG02iUHZTAuj9nzRgHwE1awg#ixzz40DgSIGIc
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[Awesom Andy]

The Australian dollar, along with a range of currencies, has firmed

Yep. Just about time now, as I'm about to land in a few days time.

 

[Flashback]

AUD has finally broken the 50p barrier again against the GBP: Bid: 0.5019 Ask: 0.5023

 

[Warks]

Unemployment up to 6% = drop in $A.

Would it be accurate to say whatever the quoted exchange rate is on any day the average exchange we get as mug punters is 5c below that? That's with all the "plus plus plus" taken into account. So if on the news they say the $A is buying $US0.71 we'd be getting $US0.66.

 

[andye]

AUD has finally broken the 50p barrier again against the GBP: Bid: 0.5019 Ask: 0.5023

Bad timing for me. Had a substantial GBP sum to convert that would have been worth a bit more two weeks ago

 

[Danger]

Unemployment up to 6% = drop in $A.

Would it be accurate to say whatever the quoted exchange rate is on any day the average exchange we get as mug punters is 5c below that? That's with all the "plus plus plus" taken into account. So if on the news they say the $A is buying $US0.71 we'd be getting $US0.66.

I think five cents is a bit much. It would also be a percentage rather than a flat amount. And there are of course credit cards out there that offer significantly better conversion rates.

 

[defurax]

I think five cents is a bit much. It would also be a percentage rather than a flat amount. And there are of course credit cards out there that offer significantly better conversion rates.

For a long time I wondered why people were using the big banks to transfer money overseas at extortionate rates, my simple answer was that most people don't know that alternative exist (e.g. OzForex, etc). Well, no, apparently it's pure laziness and/or stupidity. Someone at work needed to transfer 15,000 Euros directly to a bank account in Germany and I suggested they used a firm specialising in Forex transactions, I even looked for them at the rate difference between NAB and OzForex, on that day NAB was AUD850 more expensive. I even offered him to do the transaction from my account and he could pay me back in AUD. The day after he told me he did the transfer with his bank... So some people have complex tax affairs, SMSF, trusts, investment properties, etc, but they don't mind losing $1000 in commission...

 

[cove]

Received a thank you phone call for referring a relative to Bell FX. It is probably old fashioned to do this but I appreciated getting the call.

 

[MEL_Traveller]

Unemployment up to 6% = drop in $A.

Would it be accurate to say whatever the quoted exchange rate is on any day the average exchange we get as mug punters is 5c below that? That's with all the "plus plus plus" taken into account. So if on the news they say the $A is buying $US0.71 we'd be getting $US0.66.

As danger points out there are alternatives. A Citibank debit card for cash withdrawals overseas, or a 28 degrees mastercard for purchases (either overseas, or on-line from Australia) will see you getting a rate pretty close to the official forex rate. You're effectively saving 3%-4% (depending on you bank's margins) on every transaction.

 

[Warks]

That stinking 28 degrees card lost me when it started charging cash advance fees on my own money! I didn't find their exchange rates any good in NZ last time and ditched the card - probably didn't matter as it was fee-free which might have made up for some of the fees.

I was looking at statements from the last USA trip where I used a cash card from my bank and there seemed to be up to a 5 cent difference. I think it was "Cash Passport". I usually just pay for everything on credit cards when away and the rates on those have been getting worse for years. They have an exchange rate that doesn't look too bad but then you get all these 1% currency exchange fees on top - some of these don't come through until the next statement.

As far as I can see it's lose-lose-lose.

 

[JohnK]

That stinking 28 degrees card lost me when it started charging cash advance fees on my own money! I didn't find their exchange rates any good in NZ last time and ditched the card - probably didn't matter as it was fee-free which might have made up for some of the fees.

I was complaining loudly when 28 degrees started charging a cash advance fee. Now it doesn't bother me. I use it for cash withdrawals in New Zealand, Indonesia, Singapore, Hong Kong and sometimes Thailand. The cash advance fee is a small price to pay and I find the exchange rate very good.

 

[Deleted member 6404]

Well you know the old say more money than sense

 

[Deleted member 6404]

I load up my Citibank plus account and the transfer of cash OS is fee free, but must admit I haven't tried moving 15000$ only $1000+

 

[lovetravellingoz]

As danger points out there are alternatives. A Citibank debit card for cash withdrawals overseas, or a 28 degrees mastercard for purchases (either overseas, or on-line from Australia) will see you getting a rate pretty close to the official forex rate. You're effectively saving 3%-4% (depending on you bank's margins) on every transaction.

For overseas purchases what card (debit or credit) do people believe is best this days?

I had been using Citibank Sig CC as with 3 points per $ and a good transfer rate to KF I believed I came out in front. But with the earn rate and transfer rate both dropping am looking to swap to just getting the card with that earns the most amount of foreign currency/$Aust.

I no longer have my 28 Degress Card and so either need to re-apply or take out another card.
I do have a CitiPlus that I use for ATM withdrawls overseas.

So what are the best current card options for overseas purchases?

 

[anat0l]

So what are the best current card options for overseas purchases?

I've been happy with the co-branded Amex Platinum Reserve I get from my professional society, issued directly from American Express. 2 points per dollar spent on overseas transactions. 3% foreign currency fee and close enough to mid-market rate. (Note that quite a few bank co-brand Amex now charge 3.5% foreign currency fee).

Membership Rewards sweeps to KF at 1:1.

28 Degrees is the best if you want to avoid paying foreign currency fees (they don't have any). No annual fee and the application process is pretty simple. The trade off for it is no points.

With overseas transactions, I still debate at times whether paying the extra 3% is worth it for the points.

 

[AviationNZ]

With overseas transactions, I still debate at times whether paying the extra 3% is worth it for the points.

Couldn't agree more! Generally use my Amex Platinum Edge overseas and whilst the currency rate is good, there is the 3% fee...but I earn points. So I've gotten to the stage of thinking it all works out about the same in the end.

 

[Foreigner]

One AUD fetched AED 2.45 dirhams in Dubai tonight.

 

[MEL_Traveller]

That stinking 28 degrees card lost me when it started charging cash advance fees on my own money! I didn't find their exchange rates any good in NZ last time and ditched the card - probably didn't matter as it was fee-free which might have made up for some of the fees.

I was looking at statements from the last USA trip where I used a cash card from my bank and there seemed to be up to a 5 cent difference. I think it was "Cash Passport". I usually just pay for everything on credit cards when away and the rates on those have been getting worse for years. They have an exchange rate that doesn't look too bad but then you get all these 1% currency exchange fees on top - some of these don't come through until the next statement.

As far as I can see it's lose-lose-lose.

28 degrees is still great for totally fee free overseas transactions on CC purchases.

For cash, the citi debit card is the way to go, again it's fee free - saving you $5 on every hundred you might withdraw on a cash card (assuming you haven't been able to lock in a great rate from a couple years ago). Transferring money across to citi is fairly pain-free. You can be earning interest on your cash reserves (or mortgage off-set) right up until you need to top up.

Carrying two cards is win-win.