The Aussie dollar hits 80 cents - time to lock in the exchange rate?

At approximately 6:30am, as Aussies across the country were preparing for the day ahead, the Aussie dollar hit 80.22 US cents for the first time in 4 months.

But the currency’s 15 minutes of fame was cut short, with the dollar since dropping to 79.91 US cents.

The reason for the sudden increase is still being determined, although, some experts believe that it could be related to Australia's improved strength in US stocks.

RELATED: Lazy or unaware? The most avoidable travel traps that are costing Aussies $4.4 billion

“US stocks are surging again and that lift in investor risk appetite seems to be helping the Australian and Kiwi dollars which usually do well when risk appetite is on the rise,” said Chief Market Strategist at AxiTrader, Greg McKenna in his morning note.

However, whether the Aussie dollar will continue to remain at 79.91 US cents depends on the country’s job and unemployment numbers.

Two of the Big Four banks have weighed in with Commonwealth Bank and NAB remaining hopeful that these numbers won’t disappoint, with predictions of 20,000 and 35,00 new jobs, respectively.

RELATED: What to do when the Aussie dollar is high

And as the country continues to anticipate the climb or fall in the Aussie dollar, if you are planning a trip to the US, now might be the perfect time lock in the exchange rate, especially if you’re planning to hit up Rodeo Drive for some major retail therapy.

You can also check out our Foreign Exchange Calculator as well as our Travel Money Hub to find out how you can get the most out of your foreign exchange currency.

Mozo’s top 4 travel money tips

While a holiday is the perfect excuse to dabble in a little bit of luxury, overindulging can take a swing at our hard earned savings. So before you head off on your next adventure, here are five travel money tips to help keep your bank account intact:

  • Give your kids a limit - If you’re travelling with the little ones, it’s hard to find the balance of keeping them happy and your spending under control. But frequent spending on souvenirs and snacks can add up, so give your kids a set allowance each day to spend on whatever travel goodies they want.
  • Get a prepaid travel card - This is a great tip for those who struggle to keep to a budget as you’ll only spend the money you have and unlike a credit card, you won’t have to pay high foreign withdrawal fees. 
  • Avoid duty-free tricks - Because who can resist a cheeky discount on their favourite perfume? However, avoid paying for any items in Australia currency, as there’s usually a sneaky conversion fee, which can exceed 3%! 
  • Ditch the foreign ATMs - While you can’t resist a quick duty-free browse, you can resist the urge to withdraw money while overseas. If you’re travelling with a credit card, these generally come with a hefty foreign withdrawal fee, which are usually around the 3% mark.

Ready to get your travel money sorted? Our Travel Money hub is filled with helpful tips and tools that can help you navigate through a range of deals, fees and exchange rates.