With the recent global uncertainty surrounding Brexit & the European Union, the Australian Dollar has continued to delve into some less than predictable waters. Coupled with Donald Trump’s continued trade war with China, there are a number of global external factors having a negative impact on our Aussie Dollar.
Meanwhile with household debt increasing and house prices appearing to start to take a slump. Over the past few months, the Australian Dollar has started to decline against some of the more popular international currencies. In this article, we review what impact this is having on Australians planning on heading overseas. After all, there is nothing worse than feeling short-changed when you go and convert your AUD for foreign currency and feel like you can’t afford to go on holiday at all.
Suprisingly Australians Heading Overseas Continues To Rise
Comparing data from over 10 years ago, the number of Aussies heading overseas has more than doubled when comparing the number of travellers departing Australia in 2018-2019.
With a record number of Australians heading overseas every year. It appears as though exchange rate fluctuations are having little impact on holidaymakers venturing out to new destinations. International travel is certainly becoming more accessible, but the overall value of the AUD doesn’t appear to be negatively impacting Aussie tourists departing overseas.
As always, the importance of getting the most value out of your Australian Dollars is at the forefront of every traveler’s mind before they escape on their next adventure.
How to get the most out of your hard-earned Aussie Dollars
Whether you’re looking to exchange AUD to USD or heading out to the UK and want to change your Australian Dollars to British Pounds. There are a few things you can do to ensure you get the best currency exchange rate possible.
Lock your rate in with a prepaid travel card. If an exchange rate continues to heavily fluctuate, the rate at the time of purchase is locked in on your travel card until you’re spent out.
Abhishek Sharma of Foreign Xchange said “Prepaid travel cards are a great way to lock-in an exchange rate when you think it could be at its peak, or at the very least starting to decline. We always advise travelers planning on using prepaid cards to get a little bit of foreign cash to spend alongside your chosen travel card. There is nothing worse than being on holiday and not having a bit of spare cash or loose change to pay for small purchases such as souvenirs or a quick coffee.
Not only that, but travel cards are also a more convenient way of carrying foreign currencies than having to deal with varying banknotes and loose change all the time.
Don’t leave it till the last minute. Carry out thorough research and start tracking the exchange rate over a couple of days or even weeks. If you start to see a trend, purchase your foreign currency when you feel most comfortable in doing so. That way you’re not feeling uncomfortable or unsure if you got a good rate or not.
Leaving it at the bottom of your to-do list can see you get stung with high commission fees or weak exchange rates from varying foreign currency providers. Airports are notoriously the worst place to exchange currency due to their highly captive audience.
Ordering currency online and getting it picked up in-store or delivered to your home address can save you heaps of time and is super convenient. Comparison tools such as Finder and The Currency Shop are good sites to check rates and compare reviews.
There is light at the end of the Tunnel
At this moment in time, you’re less likely to get a better exchange rate across most international currencies than you would have six months ago. But that shouldn’t stop you from heading out on that next trip of a lifetime.
It’s not all completely doom and gloom. A lower AUD exchange rate can help improve inflation as imports start to become more expensive, and exports become a lot cheaper. Which ultimately, can help strengthen AUD in the long run.
With Brexit close to being finalised (even with a marginal extension), and Trump looking to finalise a deal between the US and China over certain tariffs. The Australian Dollar could look to make a small recovery in the early parts of next year.
Although a weak exchange rate can dampen your spirits when it comes to your holiday spending money. The AUD hasn’t hit rock bottom yet and you shouldn’t let an exchange rate stop you from traveling overseas.