Author Topic: Convert AUD to USD or sit on it?  (Read 1791 times)

Rani

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Convert AUD to USD or sit on it?
« on: November 12, 2016, 11:51:16 AM »
I'm faced with a bank account tidying up dilemma. I spent a few years working in Australia which has left me with a bank account holding $2000 AUD (costing me $6/month to keep open), and a government check of $12,000 AUD. If I cash the check and convert to USD, the exchange rate would leave me with only $9000 USD. I keep reading speculative articles which state that the exchange rate will eventually even out closer to a 1:1 like we saw in 2013.

My question: Is it better to cut my loses, convert to USD and invest the $9K somewhere or hold onto the AUD in hopes it will turn around?
Are there any other options?

Thank you!
« Last Edit: November 12, 2016, 12:11:18 PM by Rani »

marty998

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Re: Convert AUD to USD or sit on it?
« Reply #1 on: November 12, 2016, 01:37:19 PM »
Unlikely we will get back to 1:1 unless there is another mining boom - probably not going to happen for another 15 years or so... these things go in long cycles and we just "busted" one.

Only keep AUD if you think Trump will significantly devalue the USD?

Rani

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Re: Convert AUD to USD or sit on it?
« Reply #2 on: November 12, 2016, 04:54:00 PM »
Great insight marty998, thank you very much! This helps a lot.

I'll get this converted then and start investing in USD. Cheers!

alsoknownasDean

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Re: Convert AUD to USD or sit on it?
« Reply #3 on: November 13, 2016, 12:35:45 AM »
Not to mention that you're earning nothing by keeping it in AUD (in fact you're paying money).

If you get $10K USD now from it all and invest it for a few years, you might be better off than just keeping the AUD in case the exchange rate returns to parity.

FWIW, an exchange rate of 0.65-0.80USD to 1.00AUD is about the long term average.

nnls

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Re: Convert AUD to USD or sit on it?
« Reply #4 on: November 13, 2016, 01:15:03 AM »
Can you move it to an account with no account keeping fees? And possibly one that earn you interest?

https://www.ingdirect.com.au/savings/savings-maximiser.html

Grogounet

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Re: Convert AUD to USD or sit on it?
« Reply #5 on: November 13, 2016, 03:28:57 AM »
Do you use Interactive Brokers?
If the account is opened in the US, you can invest in AUD locally and covert it when you feel the exchange rate is the best.

Rani

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Re: Convert AUD to USD or sit on it?
« Reply #6 on: November 13, 2016, 11:05:46 AM »
Do you use Interactive Brokers?
If the account is opened in the US, you can invest in AUD locally and covert it when you feel the exchange rate is the best.

I think I will take this route, thanks!

I had been looking for a way to invest the AUD, but I was struggling to find a way to do that since I'm in the USA. Thank you all!