How to Make the Most of the Australian Dollar Two Year High

You might not watch the currency markets as closely as we do, but hopefully you’ve noticed the Australian dollar is doing very well.

The Reserve Bank of Australia highlighted how well the economy is doing, predicting good wage growth and highlighting unemployment being at a four-year low. This, combined with a reduction in Australia’s national deficit, and a weakening US dollar is all contributing to the strongest performance for the Australian dollar in two years.

That's all very well, but how can this rapid rise in our currency help your money go further? We’re glad you asked — whether you’re a business, expat, traveller, or just someone who wants to take advantage, here are some ways to use the current trends.

Australian Dollar vs. US Dollar — 2015 to 2017

Australian Dollar vs. US Dollar — 2015 to 2017


Taking Advantage of the High Australian Dollar — Business


The main benefit for businesses is if you’re based in Australia but you’re buying products, services, or inventory from overseas.

For example:

  • Dropshipping suppliers who source from overseas can take advantage of the strong exchange rate and order more stock.
  • Businesses who want to experiment with different product lines can do so with less financial risk, and you might find a winner.
  • If you import goods from China to sell in Australia, the beneficial currency exchange means your Australian dollars go further.
  • If you source electronic gadgets from Japan or South Korea, take advantage no
  • If you traditionally stock up for busy periods of the year you could place and pay for your orders now.
  • You could choose to buy services in a different currency (e.g. software as a service / subscription services) and pay for them in advance to take advantage

Paying overseas employees in different currencies or making rent on offices in other countries will also have less of an impact on your Australian bank balance. Transferring Australian dollars into a foreign bank account means you’ll have the right cash cushion for your future spending.

In short, if you can pay in advance for something you’re definitely going to use or need over the next few months, do it now.


Taking Advantage of the High Australian Dollar — Expats


If you’re an expat currently living in Australia, you can make the most of the exchange rate in several ways:

  • If you’ve got a retirement account in another country, now could be the time to fund it.
  • If you have a big financial commitment overseas, move the money now, even if you will be using it later.
  • If you regularly send money back to family overseas, now might be the time to transfer in advance.

If you’re an Australian expat living in a different country, first we’d want to know why you left! After that, we’d love to give you some advice:

  • If you’ve been waiting to move your life savings, now is the right time to commit.
  • If you’re still drawing a pension like superannuation or making money in Australia, ask if you can draw down some more money without penalty, and transfer it out of the country.


Exchange Rate Comparison Tool For Money Transfers



Taking Advantage of the High Australian Dollar — Travellers



Whether you’re a regular traveller, or you're off for a round-the-world trip of your life, the time to get your foreign currency is now. Decide on how you’re going to pick up currency in your destination countries and make your money transfers. That way you’ll take advantage of the current exchange rate now and the money will be there when you need it.

Click here for live rates


Taking Advantage of the High Australian Dollar — Others

Of course you might not be a business owner, expat, or traveller — why should you be excluded from making the most of the strong Australian dollar? You shouldn’t. Here are some ideas for you:

  • If you’re thinking of investing in an overseas property, this could be a great time to make enquiries.
  • There are plenty of other international investment options you might want to explore.
  • Take advantage of a forward exchange contract to lock in an exchange rate in the future.


Into the Figures — How Much the Australian Dollar Gets You in Different Currencies

Here’s a quick overview of how far $10,000 AUD will get you in various currencies, compared to how well it did in the past.


Currency AU$10,000 gets you AU$10,000 would have got you Difference in value of your money % diference in value of your money
USD $8,000 (Jul 2017) $7,000 (Jan 2016) $1,000 11.5%
EUR €6,880 (Jul 2017) €6,290 (Jan 2016) €590 9.5%
GBP £6,100 (Jul 2017) £4,850 (Jan 2016) £1,250 26%
JPY ¥888,000 (Jul 2017) ¥820,000 (Jan 2016) ¥68,000 8%
CNY ¥53,300 (Jul 2017) ¥45,500 (Jan 2016) ¥7,800 18%


As you can see, moving your money now means you could get one of the best value deals over the last 18 months. Use one of our recommended currency providers to keep your fees low and make your money go even further.


Recommended For You

Cheaper ways to transfer money overseas

5 Cheaper Ways to Transfer Money Overseas

Using a bank is one of the easiest ways of sending money overseas, but it is also the most costly. Here are 5 cheaper alternatives.


Currency Exchange

The Ultimate Guide to Currency Exchange

Want to know the best way to exchange money? This guide shows you how to track down the cheapest way to buy currency for an overseas holiday.


Buying Currency Online versus In Person

How to Buy Currency: Online versus In-Store

Which is the better option for you to buy your travel money - online or in-store? Read this article to find out.


Have a question? Ask our experts. Request a call 1800 004 930