Aussie dollar hits two-year high - good news for your international money transfer
The Australian dollar yesterday broke past 74 US cents and hit its highest level since August 2018.
US dollar weakness and an uptick in domestic economic activity have helped to prop up the Aussie dollar and right now the AUD is trading at around 74.1 US cents.
This comes after Wednesday’s release of Australian Bureau of Statistics data which indicated Australia’s economy is bouncing back. Our gross domestic product (GDP) in the September quarter is up 3.3%, thanks to COVID-19 restrictions easing across most of the country (although GDP is still 3.8% lower than a year ago).
This sentiment of cautious optimism was also reflected in Reserve Bank Governor Phillp Lowe’s statements on Tuesday, following the latest RBA meeting.
“The positive news on vaccines has boosted equity markets, lowered risk premiums and supported further increases in some commodity prices. The improvement in risk sentiment has also been associated with a depreciation of the US dollar and an appreciation of the Australian dollar,” he said.
“In Australia, the economic recovery is under way and recent data have generally been better than expected. This is good news, but the recovery is still expected to be uneven and drawn out and it remains dependent on significant policy support.”
A lower Aussie dollar makes Australian exports cheaper and more attractive to overseas buyers, so a stronger AUD isn’t ideal for improving the GDP.
But the strong Aussie dollar right now is beneficial for anyone looking to transfer money overseas from Australia to the US. It means the currency market has moved in your favour and you can potentially get more USDs for the same amount of AUDs sent.
Remember though, that even if the market is looking favourable for you, different bank and foreign exchange (FX) specialist providers will still charge their own margins and fees on top. So it’s a good idea to shop around regardless. That way you can find the cheapest deals for your money transfer.
Compare a few competitive exchange rates in the table below or jump over to our international money transfers hub for even more options.
Not sending money overseas just yet? Look out for a feature known as a forward contract (offered by many FX specialists). This tool allows you to secure today’s rate for a transfer in the future, sometimes up to two years in advance.
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