Predictions for the US Dollar? Up or down?

[Aynat62]

Does anyone own a crystal ball?

What is the consensus on the future of the US dollar against the AUS dollar? Reading the newspapers shows that some experts are saying the US dollar will regain it's power near the end of the year, and that could mean the end of good travel deals to the US and online purchases.

 

[cove]

Our currency has been driven by the interest rate differentials and commodity prices.
With QLD and chunks of NSW pretty well up the creek you might want to buy a bit but maybe not all of your needs.
It would be very dark days for farmers , flood victims and homeowners with large mortgages to have those folks in the Reserve Bank raise interest rates any time soon.
Remember no one is a guru....just go with your gut instinct.

 

[codash1099]

In response to the subject question, taking everything into account, by and large, my considered answer is:

"Yes"

 

[Mal]

Well the $A has been knocked around by the flooding and restrictions on shipping out resources. This isn't going to be very quickly resolved.

Then you have all the money the Fed (and State) Govt has to spend on flood repair etc.

So IMHO, there will be a downward pressure on the $A for the short-term. The $A can't stay as high as it is over the much longer term, but I have no idea when the $US will recover.

These are my random ramblings, and may not reflect reality!

 

[docjames]

See the "Falling.....Help" thread for an idea of how much it can rise/fall.......


Recent drop due to fears following flooding combined with more recent strengthening signs in the US economy willbe reversed if the damages bill from the floods dont dent the economy as much as expected, or the US comences fiscal "easing" (read: prints more USD).


50/50 to me, I guess it depends on your requirements.

If travelling o/s, my personal plan is typically to buy up to half my needs at the price I determine "fair" / at the time of booking to stabilise my "budget", then the other 50% wont make or break you depending on which way the exchange rate goes....

 

[odysseus]

Reading the newspapers shows that some experts are saying the US dollar will regain it's power near the end of the year, and that could mean the end of good travel deals to the US and online purchases.

Since you're talking a year away I would say "both" over that time.