Aussie dollar climb to US75 cents a win for those travelling overseas

The Aussie dollar rose to US75 cents overnight as part of a series of exchange rate movements that have been favourable since last week. This comes as the exchange rate for the AU dollar was at a low point in January at only US68 cents.

While the dollar has been kicking goals this week, RBA board member Phillip Lowe said the Aussie is depreciating overall.

Lowe made a keynote speech on the resilience of the Australian economy and said that the country’s growth is finding balance partially thanks to exchange rate movements.

“The effect of the exchange rate depreciation is evident in the improved conditions and prospects for a number of industries, including tourism, education, agriculture and parts of manufacturing.”

“Just as the earlier appreciation helped the economy avoid overheating during the resources boom, the depreciation is now helping the economy adjust to lower commodity prices and lower investment in the resources sector,” said Lowe in the speech.

The Commonwealth Bank seemed to agree in a report this morning which noted the Australian dollar would struggle to stay high due to “disappointing trade data out of China.”

Currency analysts at the Commonwealth Bank forecasted earlier this year that the AU dollar will drop to US65 cents by the end of March before recovering to around US70  cents by the end of 2016.

How Aussies can take advantage of the AU dollar surge

For Australians planning a winter escape abroad, this could be the perfect time to lock in a competitive exchange rate on a prepaid travel card, before the Aussie dollar drops, as predicted.

Scenario: Travel money outcome for a US holiday

Say you’re going to enjoy a mid-winter break in the states with a friend. Given the strong AU dollar might not last, loading AUD$8,000 into the Cash Passport Prepaid Currency Card with a high exchange rate of 0.71, at the time of writing would secure you a tidy sum of US$5,680 for your travels.

That rate combined with the travel card benefit of having no ATM withdrawal fees while you’re there could give you just the confidence you need for a budget-friendly vacay.

But if you waited until the end of the month and the Aussie dropped to 65 cents against the US dollar as predicted by CommBank currency analysts, you would only get $5,200 out of your $8,000 Australian dollars in US currency.  The $480 you missed out on for not locking in your dollar sooner could have been put towards shopping up a storm on Rodeo Drive!

Do you have a serious case of wanderlust and want to remedy it by locking your funds into a prepaid travel card now? Visit the Mozo prepaid travel card hub to compare features and rates from a range of providers.

Prepaid travel card comparisons on Mozo - rates updated daily

Search promoted prepaid travel cards below. Advertiser disclosure.
  • placeholder
    Revolut Account

    Today's rates
    Purchase fee
    Overseas ATM withdrawal
    USD: 0.6512
    GBP: 0.5169
    EUR: 0.6013
    NZD: 1.0851
    $0
    $0 under AUD $350 or 5 withdrawals for Standard, AUD $700 for Premium, then 2% (AUD $1.50 min)

    Details
  • placeholder
    Money Card

    Today's rates
    Purchase fee
    Overseas ATM withdrawal
    USD: 0.6347
    GBP: 0.5009
    EUR: 0.5841
    NZD: 1.0520
    $0 Online (greater of 1.1% of initial load amount or $15 in-store)
    0 AUD

    The Travelex Money Card can be used wherever Mastercard is accepted online or in-store at millions of outlets around the world. $0 Eftpos and ATM fees, $0 currency conversion and online shopping fees. Better rates available on amounts over AUD$2,000.

  • placeholder
    Platinum Prepaid Currency Mastercard

    Today's rates
    Purchase fee
    Overseas ATM withdrawal
    USD: 0.6254
    GBP: 0.4936
    EUR: 0.5756
    NZD: 1.0383
    $0 online (greater of 1.1% of initial load amount or $15 in-store)
    2.50 USD

    Get Free Global Wi-Fi when you travel with Cash Passport. The Platinum card has many beneficial attributes, including free global WiFi.

  • placeholder
    Travel Platinum Mastercard

    Today's rates
    Purchase fee
    Overseas ATM withdrawal
    USD: 0.6189
    GBP: 0.4849
    EUR: 0.5623
    NZD: 1.0241
    $0 when loaded at Australia Post or online. (1.1% when loading AUD)
    3.50 AUD

  • placeholder
    Currency Pass

    Today's rates
    Purchase fee
    Overseas ATM withdrawal
    USD: 0.6300
    GBP: 0.4908
    EUR: 0.5726
    NZD: 1.0324
    $0 online
    2.50 USD

Mozo provides general product information. We don't consider your personal objectives, financial situation or needs and we aren't recommending any specific product to you. You should make your own decision after reading the PDS or offer documentation, or seeking independent advice.

While we pride ourselves on covering a wide range of products, we don't cover every product in the market. If you decide to apply for a product through our website, you will be dealing directly with the provider of that product and not with Mozo.