Currency exchange rates are something that many folks won’t typically be interested in unless of course you were looking to calculate how many beers your home currency will buy you when traveling abroad on holiday.
Moving to the other side of the world with all of your worldly possessions however means that exchange rates can play a bigger part in how much you’ll be worth when moving to Australia.
As an example, back in February last year 1 UK pound would but you approximately $1.47 Australian dollars. Today however the pound is much stronger with 1 UK pound now buying $1.63 Australian Dollars.
Woopie Do! How interesting.. Not! But seriously. Lets add a few zero’s onto these figures
Lets imagine you sold your house and all your possessions and had a cool 200k in UK sterling to bring to Australia.
Back in 2012 you’d get $294,000. Today you’d be looking at $326,000. That’s a cool $32,000 in change and all down to the fact that the Australian dollar is weaker than it has been for some time.
So whats been going on and why the change.
Well, for starters, the Australian economy expanded at a slower rate than expected between January and March this year building the case for another rate cut by the Reserve Bank of Australia.
A strong economy, relatively high interest rates and robust demand for its natural resources from its main export partner China, had helped to underpin the strength in the Australian dollar in recent years; however these supporting factors are now beginning to recede. China is experiencing a slowdown of its own economy which will likely lead to a drop in demand for Australian exports.
Sterling on the other hand has been buoyed by a round of improving economic data releases so far this week.
So in short. It’s a not the most interesting subject but then, if your moving to Australia now, you’ll be a lot better off then you were 12 months ago.