FX rates are down?
Foreign exchange rates, like all cyclical things in life, go up and down.
As a general rule, a currency’s valuation generally trends in line with the fortunes of the respective country but there are many other influences, the health of the global financial markets, the monetary policies of foreign central banks, natural disasters and so on. Due to these many factors country’s economic cycle cannot be predicted with absolute certainty and consequently, trading currencies is a very difficult thing to do.
Nobody has control over the direction of a currency, but everybody has control over their personal finances and so it is incumbent upon everybody remitting money overseas to ensure they are getting the most out of their money transfers.
AUD and NZD performance
The Australian and New Zealand dollar is currently performing quite poorly compared to a basket of other currencies. To the US dollar, the Australian dollar is down 31.25% since highs seen in 2013 and the Australian dollar is predicted to fall further to 65c. The New Zealand dollar is down 17.28%. This is because the Australian (and kiwi) economy is looking pretty shaky as a result of the slowing Chinese commercial activity. The forces that are pushing the Aussie and kiwi down are beyond the control of the RBA and Australians are virtually powerless in the face of the economic Chinese behemoth. If the Pacific economies are to slow, remitters will be forced to send less and some will be inevitably forced to pause their regular payments if unemployment goes up.
For remitters, there is one thing that can be done to soften the blow and that’s to shop around. You can increase the amount received by 2.5% simply by using an independent remitter instead of a bank.
Furthermore, OrbtiRemit offers some of the best rates around. Please have a look to see how we perform compared to our competitors on transfers of $1000 AUD.
If you’re thinking about making a transfer and being disheartened by the poor rates offered by the market, consider using OrbtiRemit to make your next transfer and we’ll cheer you up.
Use the code FIRSTFREE to obtain your first transfer for free.