Money transfer tip: AUD rebound expected after decline
The Australian dollar is expected to rebound to 75 US cents even though it’s gone through a steady decline these past few months.
Last year it hit 74 US cents in December for the first time in two years, since then the Aussie dollar has fluctuated between 69 US cents to 79 US cents.
During COVID-19, many countries struggling to handle outbreaks saw their currency depreciate. However, aside from the pandemic, another issue is rising which is predicted to hurt many economies across the globe, including Australia: the Evergrande crisis.
If you haven’t heard of Evergrande that is okay, most people who aren't heavily invested in the global financial markets might not know this name. Evergrande is China’s second-largest property developer and they are struggling to keep up with $300 billion USD of debt. This major company runs the risk of going under and if it does it may cripple China’s economy, which, in turn, may hurt Australia’s economy because China is our largest trading partner.
OFX Currency Outlook October predictions said that the Evergrande crisis may cause economic global uncertainty that could lead to high inflation worldwide and “unfavourable conditions for commodity currencies like the AUD.”
“Despite the pessimistic outlook there is opportunity should there be any uptick in global sentiment, accelerating a broader AUD rebound towards 0.75 USD,” said the report.
In early October the AUD gradually rose from 71 US cents to 74 US cents.
Keep in mind that even if the market looks favourable, different banks and foreign exchange providers will still charge their own margins and fees on top of that. It’s a good idea to shop around and find the cheapest deals for your money transfer.
If you are looking to send money overseas or a forward contract, it might be a good time to keep an eye on the exchange rate to lock in a good rate. Compare the exchange rate between several providers below or jump to our international money transfers hub for more options.
Personal international money transfer comparisons on Mozo
I want to transfer
Today’s foreign exchange rates
- Excellent exchange rates, no transfer fees
- 24/7 transfers online, over the phone or through the TorFX app
- Personal account management and expert insights
$6,338 USD
IN PERSONn/a
BY PHONE$0
ONLINE$0$0.6338 USD
1-2 days
$200 minimum
- Send to 200+ countries and 100+ currencies globally, 48,000+ 5-star 'Excellent' ratings on TrustPilot
- Dedicated Australia-based client services team with personal account management for transfers over $20,000
- Send fees are charged on smaller amount transfers, additional fees are charged on debit and credit card payment methods.
$6,322 USD
- IN PERSONn/a
BY PHONEn/aONLINE$5 $0.6325 USD
1-3 days
none
- Fee Free transfers
- Talk to a human, 24/7. Sharp Rates and Fast and Secure transfers.
- Australian owned, ASX listed and Official Foreign Exchange Provider of the NHL
$6,322 USD
- IN PERSONn/aBY PHONE$0ONLINE$0
$0.6322 USD
1-2 days
$250 minimum
$500 monthly minimum for regular transfers
- 48 hour fixed rates, receive 5 fee-free transfers
- Fast, secure transfers, up to 8x cheaper than the banks
- Send and receive money in 20+ currencies
$6,290 USD
- IN PERSONn/aBY PHONE$5ONLINE$5
$0.6293 USD
1-2 days
Minimum transfer amount is $10 AUD
* The exchange rates offered by each provider are indicative exchange rates that have either been supplied by each provider or gathered by Mozo. Exchange rates fluctuate constantly and as a consequence the exchange rates listed here may vary to the actual exchange rate you are quoted by a provider. Please ensure you confirm the actual exchange rate with the relevant provider prior to conducting any transaction. These exchange rates are updated every hour.
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