Falling!!! Help!!!

[delfredo]

Delfredo we placed the order with Westpac before New year with the Westpac forex dealer at that level. It was not a holiday overseas so that order goes offshore and on 3rd January it traded up to 1.0253 so we get our deal at our ordered level of 1.025. That was the left hand side trade for a buyer.
No one knows if Aussie should be 80 cents or 110 cents but I definitely buy a bit when it is running up.
I bought some Euro and Pounds today but who knows if that was a good idea?
I am thinking about a London flat as part of my bucket list.

Wow, that's a great deal! Your buy price is only 3 pips below spot rate. I know that the best I can get from Citi is 60 pips below spot rate, ie. if the spot rate is 1.0253 my buy price will be 1.0193. How do you place an order with Westpac? What is the name of their product/account and is there a minimum? I'm assuming that you kept your USD in a foreign currency account with them rather than walking away with the currency?

 

[cove]

Delfredo it is all part of being a bank customer. We deal at about 10 pips.
I did pound yesterday at .6533 and the euro at .7573.
I see the floods and the out of control currency as being 2 disasters and when you combine this with our current Government need I say more.
You can laugh if the Aussie goes up another 10 per cent.
The big 4 banks can let you access their dealers but not for modest sums of currency.

 

[cove]

Currently that money sits in a Westpac deposit account from the date the deal settles.
I hope you liked my Frequent Flyer Fiend blog as that is all part of the Game that includes great exchange rates,cheapest luxury travel and having fun.

 

[Alanslegal]

I'm not very familiar with what you guys are talking about but is this a Westpac product, and something similar to HSBC Premier and involving multiple foreign accounts? where you can transfer to / from your own accounts ?

 

[delfredo]

The big 4 banks can let you access their dealers but not for modest sums of currency.

So how much are we talking about? Would A$20k qualify?

 

[cove]

For a telegraphic transfer the amount is less than 1k if you have an address to send the foreign currency by telegraphic transfer.
Typically a term deposit would be about $50k to keep the funds here in a chosen currency. Aussie interest rates are high and US and other rates are low so you will miss earning interest at a rate that you would like.
That was an answer from Westpac so your bank may be a little different.
I hope this helps you get a way better exchange rate than "retail".
Basically the foreign exchange dealing room is "wholesale" and the big 4 would have an equivalent in each capital city.

 

[delfredo]

For a telegraphic transfer the amount is less than 1k if you have an address to send the foreign currency by telegraphic transfer.
Typically a term deposit would be about $50k to keep the funds here in a chosen currency. Aussie interest rates are high and US and other rates are low so you will miss earning interest at a rate that you would like.
That was an answer from Westpac so your bank may be a little different.
I hope this helps you get a way better exchange rate than "retail".
Basically the foreign exchange dealing room is "wholesale" and the big 4 would have an equivalent in each capital city.

How do you get access to wholesale rates though? Do you need to have a business account? If I speak to the banks they will refer me to the retail rates.

 

[cove]

Because we have a business I don't know how you get in as I am already there.
Ask about it further at your Bank as it could save you.

 

[kpc]

Just for fun....as per xe.com now:
1 AUD =
1.0343 USD
0.7305 EUR
0.6453 GBP
86.5808 JPY
1.3050 SGD
3.1310 MYR
1.3576 NZD:mrgreen:

What a great time to travel overseas!!!:idea::!::mrgreen:

 

[lovestotravel]

Yep I need to lock in a Hawaii holiday for late this year, but need a damn J* *Class special

Waiting waiting...

 

[Timba-Jet]

Just for fun....as per xe.com now:
1 AUD =
1.0343 USD
0.7305 EUR
0.6453 GBP
86.5808 JPY
1.3050 SGD
3.1310 MYR
1.3576 NZD:mrgreen:

What a great time to travel overseas!!!:idea::!::mrgreen:

Woohoo , XE is now showing 1 AUD = 1.0390 USD!
This means the ave Jo Bloe can walk into most exhange booths, hand over a $100 AUD note and get back more than $100 USD back.

Wonder how high it will go!

 

[drron]

Woohoo , XE is now showing 1 AUD = 1.0390 USD!
This means the ave Jo Bloe can walk into most exhange booths, hand over a $100 AUD note and get back more than $100 USD back.

Wonder how high it will go!

Not quite-the banks and Amex have definitely widened their spreads in the last 12-18 months.Used to be about 3-4 cents between buy and sell quote.Now it is 7-8cents.

 

[serfty]

That 3%-4% should cover most CC payment fees and margins.

I don't thing the banks have deliberately changed their margins. At UD75¢ per AU$, that 3-4¢ represents an arbitrage rate in round figures of 4-5%. Now it's 7-8¢, that's still about the same arbitrage rate.

 

[trooper]

Needed a USD$ Bank Cheque this week... the exchange rate applied on that was better than parity...

I was shocked! :mrgreen:

 

[cove]

Have been squirreling away some Pounds and Euros for an apartment.
I am still dealing at 7 pips on buying in 100k amounts and am hoping for some .65 on the pound this week.

 

[drron]

That 3%-4% should cover most CC payment fees and margins.

I don't thing the banks have deliberately changed their margins. At UD75¢ per AU$, that 3-4¢ represents an arbitrage rate in round figures of 4-5%. Now it's 7-8¢, that's still about the same arbitrage rate.

Now I am a little rusty on my maths but surely at US75 cents then a with spread of 3 cents the arbitrage is 4% at US1.75 a 7cent spread is 4% and at parity a 4 cent spread is 4%.
So indeed i think the banks are gouging.

 

[serfty]

Now I am a little rusty on my maths but surely at US75 cents then a with spread of 3 cents the arbitrage is 4% at US1.75 a 7cent spread is 4% and at parity a 4 cent spread is 4%.
So indeed i think the banks are gouging.

I did use the words "round figures" but, yes, on those numbers there is a increase in the spread of at least 1.4% since mid-late 2009 (4¢ is 5.33% at $0.75 & 7¢ is 6.73% is at $1.04).

So, while in a contemporary sense, the banks have always been 'gouging', they are indeed now 'gouging more'.

 

[serfty]

That 3%-4% should cover most CC payment fees and margins. ...

It certainly did (just) for an AMEX purchase last Sunday:

  3 Apr   DFS USA - LAX TOM BRAD 300987654875452   [B]$99.66[/B]
          [B]99.90[/B] US DOLLAR CONVERTED TO
          DUTY FREE STORE 99.90

[ASIDE]

As an aside, the same products purchased on arrival into MEL (F1rst Duty Free) would have cost ~AU$140​

[/ASIDE]

 

[oz_mark]

Well, here's a prediction for you :shock:


Rampaging dollar 'could hit $US1.70' as budget and industries threatened | The Australian

 

[kpc]

Well, here's a prediction for you :shock:


Rampaging dollar 'could hit $US1.70' as budget and industries threatened | The Australian

I might have to visit the US monthly for shopping if that prediction came true!!:shock::mrgreen: