- Joined
- 2 February 2006
- Posts
- 14,009
- Reactions
- 2,897
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?
This is a mobile optimized page that loads fast, if you want to load the real page, click this text.
wait for 89 to break I say, if and when it does ill be loading up
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.
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.
Hi prawn, do you know of any Australian nostros providers who can hold in Chinese Yuan?
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.
white_goodman
BOC
- Joined
- 13 December 2007
- Posts
- 1,635
- Reactions
- 0
wait for 89 to break I say, if and when it does ill be loading up
prawn_86
Mod: Call me Dendrobranchiata
- Joined
- 23 May 2007
- Posts
- 6,637
- Reactions
- 7
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.
- Joined
- 8 December 2009
- Posts
- 35
- Reactions
- 0
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.
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
Mod: Call me Dendrobranchiata
- Joined
- 23 May 2007
- Posts
- 6,637
- Reactions
- 7
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.
- Joined
- 8 December 2009
- Posts
- 35
- Reactions
- 0
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.
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.
- Joined
- 8 December 2009
- Posts
- 35
- Reactions
- 0
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.
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.
Hi prawn, do you know of any Australian nostros providers who can hold in Chinese Yuan?
prawn_86
Mod: Call me Dendrobranchiata
- Joined
- 23 May 2007
- Posts
- 6,637
- Reactions
- 7
- Joined
- 4 January 2005
- Posts
- 1,231
- Reactions
- 0
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
ac
ps hope they are in right sequence
- Joined
- 2 February 2006
- Posts
- 14,009
- Reactions
- 2,897
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.
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.
- Joined
- 2 February 2006
- Posts
- 14,009
- Reactions
- 2,897
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.
- Joined
- 4 January 2005
- Posts
- 1,231
- Reactions
- 0
Re: AUD/USD road map
aud/usd chart for those interested
ac
aud/usd chart for those interested
ac
- Joined
- 4 January 2005
- Posts
- 1,231
- Reactions
- 0
Re: AUD/USD Road Map
morning
today's road map
ac
morning
today's road map
ac
>Apocalypto<
20.03.2012
- Joined
- 2 February 2007
- Posts
- 2,233
- Reactions
- 2
Re: AUD/USD Road Map
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 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!
- Joined
- 4 January 2005
- Posts
- 1,231
- Reactions
- 0
Re: AUD/USD Road Map
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
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