AUD/USD

[noirua]

Markets have been put off by interest rate statements and the AUD is slipping against the USD. Could this be a good reason to switch or is it just a short term glitch?

 

[white_goodman]

Markets have been put off by interest rate statements and the AUD is slipping against the USD. Could this be a good reason to switch or is it just a short term glitch?

wait for 89 to break I say, if and when it does ill be loading up

 

[port_4]

Hi there,
This may seem really simple but I am after a way to invest in $US for the long term... Is it as simple as going to the bank and changing money over or is there a better way it can be done?

Thanks

 

[prawn_86]

Hi there,
This may seem really simple but I am after a way to invest in $US for the long term... Is it as simple as going to the bank and changing money over or is there a better way it can be done?

Thanks

Port,

You can invest in what are called nostros accounts. Essentially you have an account (held in Aus) in USD and are paid the USD interest/savings rate. The money can then sit in that account as long as you want with no margin required. PM me if you want more details.

 

[port_4]

Thanks prawn... Appreciate the offer! Ill have a look into it!

 

[Knoxy]

Port,

You could open a forex trading account and sell the AUDUSD. It'd be preferrable to physically changing AUD into USD because of the leverage ie. you don't need to put up huge quantities of cash.

With an AUDUSD short as the AUD drops against USD you'd make money in AUD terms. Problem with this approach is the interest rate differential, you'd be paying rollover charges based on 3.75% per annum at present. Wouldn't be a problem if the AUD falls by more than this.

Historical average is in the 0.74 area, so from a really long term perspective, could be a rewasonable play.

 

[prawn_86]

Port,

You could open a forex trading account and sell the AUDUSD. It'd be preferrable to physically changing AUD into USD because of the leverage ie. you don't need to put up huge quantities of cash.

With an AUDUSD short as the AUD drops against USD you'd make money in AUD terms. Problem with this approach is the interest rate differential, you'd be paying rollover charges based on 3.75% per annum at present. Wouldn't be a problem if the AUD falls by more than this.

Historical average is in the 0.74 area, so from a really long term perspective, could be a rewasonable play.

But then your opening yourself up to credit risk and the risk of a margin call, which may not be what some people are after, especially with a long term investment. Margins/leverage are generally more dangerous the longer you plan on holding.

If port has say a spare 100k laying around, and just wants it unleveraged in a USD denominated account, a nostros account is the way to go.

 

[Knoxy]

Fair enough and no doubt a good option depending on circumstances.

If I had 100k and wanted to invest in USD, I'd think about 20k in a trading account, sell 1 lot AUDUSD then invest 80k in something else in Aus. With 20k in trading account margin call only happens at 20c above current rates (ie. 1.09) for 100:1.

You could go very conservative and put 50k in the trading account. Remembering you'd be feeling equally sick at the margin call 1.39 if you'd exchanged the full amount to USD.

 

[port_4]

Thanks Knoxy... I might set up an account and not expose myself too much (as in not fully leveraged).
Do you have any suggestions as to which broker to use?

Much appreciated!

 

[Knoxy]

Port,

There are recommendations on this forum regarding brokers. I can only agree with others that the broker should be regulated by ASIC if local and by the US regulators if there. You need to be confident about the company and how they hold your funds.

I use FXCM and have no issues with them. Originally I set up with them in the US, but the account transferred to FXCM Aus. I have USD and AUD accounts and feel comparatively safe as they're one of the largest fx brokers in the world. Also have a small account with Go Markets, trying them out.

Don't take what I say in earlier posts as trading recommendation. I trade a smallish account on short term trades, I don't invest long term.

Cheers.

 

[port_4]

Thanks Knoxy... Thought I might set it up that way before your advice anyway! No blame to you at all!

 

[sinner]

Port,

You can invest in what are called nostros accounts. Essentially you have an account (held in Aus) in USD and are paid the USD interest/savings rate. The money can then sit in that account as long as you want with no margin required. PM me if you want more details.

Hi prawn, do you know of any Australian nostros providers who can hold in Chinese Yuan?

 

[prawn_86]

Hi prawn, do you know of any Australian nostros providers who can hold in Chinese Yuan?

Have sent you a PM

 

[acouch]

have just set up a rm on aud/usd for interest..maybe some would like to have a look on how ML work on everything
ac

ps hope they are in right sequence

 

[noirua]

I have moved about half of my AUD to USD over the last week.
Some foreign investors may see the Aussie market as quite expensive when they look at prices in their own currency terms; news may not be good enough to take the AUD to par with the USD.

 

[noirua]

I have moved about half of my AUD to USD over the last week.
Some foreign investors may see the Aussie market as quite expensive when they look at prices in their own currency terms; news may not be good enough to take the AUD to par with the USD.

Still happy with my currency position as concerns amongst banks continue. Worldwide worry tends to attract people to the USD at present low levels for the greenback. I'm expecting the AUD to drift very slowly indeed and AUD1.15 to the USD1 to be reached during March.

 

[acouch]

Re: AUD/USD road map

aud/usd chart for those interested

ac

 

[acouch]

Re: AUD/USD Road Map

morning
today's road map
ac

 

[>Apocalypto<]

Re: AUD/USD Road Map

morning
today's road map
ac

Acouch you have joined team FX!!! welcome aboard! What happened to the spi???

depending on your Broker, the cable eurjpy and usdjpy are great for short term trading it's all I look at.... GBPJPY also good. (spread worse then EURJPY) if you like wild rides GBPAUD!!!! I fear that beast!

 

[acouch]

Re: AUD/USD Road Map

Acouch you have joined team FX!!! welcome aboard! What happened to the spi???

Hi apocalypto.

spi rm still going, just that i have set up the aud/usd. and thought it might be of some help
to fx traders

:couch