TGIF everyone. Before we delve into what has been impacting the Aussie dollar this week, I just wanted to take a quick moment and wish all of our February 29th babies a happy birthday for tomorrow! It only comes around every four years, so I hope you have a cracking party. Consider treating yourself to a holiday, I hear the Pacific Islands are great this time of year. You only live once, and only birthday every four years, you deserve it.
If you’re heading overseas for a special birthday treat, you’ll need to buy some foreign currency. With that in mind, one Aussie dollar will currently buy you:
Worried about missing out on a great rate? Stress less! Just add Rate Move Guarantee to your purchase in store. If the exchange rate improves within 14 days of purchase we will refund you the difference!*
What has impacted the Aussie dollar this week?
Unless you’ve been living under a rock, or have had your head buried in Feb 29th birthday party planning, I’m sure you’re aware of the fact that Coronavirus, or COVID-2019 has been all over the news.
The last few days have seen a few developments, mainly that the new cases within China are beginning to slow (good news), but cases outside of China are increasing (not so good news). The spread out of China has put a fair bit of pressure on markets, and yesterday stock and equity markets saw pretty significant decreases as a result.
Fresh concerns in the US put downward pressure on the value of the USD as well, and led it to decrease in value against most major currencies overnight. This is good news for the AUD, which went the opposite way and saw an uplift against most currencies except the EUR. While we can celebrate this small win, the little Aussie battler is still experiencing lows that haven’t been seen since before the start of the GFC.
Thankfully, we have also seen some improvements in the value of the Chinese yuan, which is further helping the AUD from dropping further due to the close ties between the Aussie and Chinese economies.
With a lot of mixed messages in the media, it can be hard to know where you should travel this year and when you should purchase your foreign currency. The quick answer is - no one really knows. BUT, we do have some tips to ensure you can have your cake (holiday) and eat it (get a good exchange rate) too.
First things first, don’t cancel your holiday. If you’re booked to travel to a COVID-19 affected area, consider postponing or changing your destination. The UK, USA, New Zealand and Pacific Islands have some pretty epic travel deals on at the moment, and are patiently waiting for you to come and visit. Alternatively, why not travel domestically this year? Aussie tourism has taken a bit of a hit after the bushfires, so pack the fam into your car and consider a holiday that will help those impacted by the fires as well. Better yet, investing your money back into Australia will help our economy and, in turn, help boost the value of the Aussie dollar.
When it comes to foreign currency, there really is no way of knowing what markets and the value of the AUD will do (if you do know, can you please let us know?). What we do know is the following:
You can sign up to rate alerts, and we’ll let you know when the AUD hits a high against your preferred currency
It’s worth adding Rate Move Guarantee to your purchase in store
You can lock in a great exchange rate with your Travel Money Oz Currency Pass
For travel advice, we recommend speaking to your local travel agent and keeping an eye on Smart Traveller. For anything currency related, you’re always welcome to swing by any of our stores and chat to our travel money experts.
This blog is provided for information only and does not take into consideration your objectives, financial situation or needs. You should consider whether the information and suggestions contained in any blog entry are appropriate for you, having regard to your own objectives, financial situation and needs. While we take reasonable care in providing the blog, we give no warranties or representations that it is complete or accurate, or is appropriate for you. We are not liable for any loss caused, whether due to negligence or otherwise, arising from the use of, or reliance on, the information and/or suggestions contained in this blog. All rates are quoted from the Travel Money Oz website and are valid as of February 28th 2020. Terms and conditions apply to Rate Move Guarantee.