The dollar hit a 12 month low last week, sparking concern it could drop again before the end of the year. In this article we give you an Australian Dollar Update. We have a look at where it is at the moment, and why it dropped. You'll find out how a low Australian dollar can affect you, and how it is performing against most major currencies specifically, the US dollar. We'll also see whether the banks think the Australian dollar will go up.
This article will cover:
- Exchange rates
- Average bank rates and margins
- Aussie dollar trends
- Australian Dollar forecasts
- What it means for you
Video: Market Update for June 25th 2018
The information depicted in this video was correct on June 23rd, 2018 at 11am AEST.
Australian Dollar Exchange Rate
These are the exchange rates between the Australian Dollar and other major currencies. They were correct at 11am AEST 23.06.18.
Column 1 gives you the interbank or midmarket exchange rates at the moment. We have included the Aussie Dollar against; USD, EUR, GBP, JPY, NZD and IDR.
Column 2 looks at the average bank rates being offered for currency exchange or international money transfers. We have calculated these from the Big Four Banks in Australia; Westpac, NAB, ANZ and Commonwealth Bank.
Column 3 gives you the margin between the actual rate and what the banks are offering you. This margin is what gives you an idea of whether the rate you're being offered is “good” or “bad”. Usually, a better rate and lower fees can be found when it comes to currency. Using a comparison table let's you find the best rate for both situations.
Australian Dollar Trends
Last week the Australian Dollar, dropped to a 12-month low against the US dollar. This drop can be attributed to the fact the US economy strengthened unexpectedly, and there were a number of international factors that also impacted the dollar.
In June alone, the dollar has dropped 4%, and it has dropped 7 US cents since the start of the year. There is still the opportunity for the dollar to go back up, but it is the lowest its been for a while at the moment.
Australian Dollar Forecasts
The banks didn't change their forecasts again, but the dollar has changed it position in relation to them. The dollar is expected to go down against the Euro (EUR) and the Pound (GBP), up against the US Dollar (USD), Japanese Yen (JPY), and New Zealand Dollar (NZD). Click here to read more about forecasts for the Australian Dollar.
What does it all mean?
There always seems to be concern when the dollar is lower, but it isn't always necessary. If you're recently back from a holiday and have left over currency, it can be a good time to exchange it back to AUD. Or if you're transferring money into Australia, or receiving it, it also puts you in a good position.
For weekly information and videos about the Australian dollar you can subscribe to our YouTube channel. We also review money transfer companies and make tutorials on exactly how to send money overseas.