Bad news for travellers: finder.com.au Australian Dollar Survey shows value set to drop further
- Australian Dollar hits 4-year low of US$0.86: RBA
- finder.com.au Australian Dollar Survey shows Aussie Dollar expected to fall further
- Take precautions before flying by comparing travel insurance
November 7, 2014, SYDNEY – Bad news for Aussie travellers and international online shoppers, as the Australian Dollar is expected to worsen for the peak holiday season, according to a new survey by one of Australia’s biggest comparison websites finder.com.au released today (November 7, 2014).
The finder.com.au Australian Dollar Survey of eight leading experts, found that the Australian Dollar is likely to hit US$0.85 by the end of 2014.
One of the eight experts – Shane Oliver, Head of Investment and Chief Economist at AMP – held the lowest forecast of $0.82 by the end of the year.
The Survey follows the Australian Dollar hitting a four-year low yesterday, closing at US$0.86 on November 6, 2014. The Australian Dollar has not reached this low since June 2014.
Michelle Hutchison, Money Expert at finder.com.au, said Australians who are planning to travel overseas this summer, need to prepare for higher costs.
“The low Australian Dollar is bad timing for many Australians, as more people travel overseas from December than any other time of the year. For instance, almost one million Australian residents travelled overseas in December last year (excluding permanent moves) – that’s 45 percent more travellers than the previous month.
“This means that Australians need to prepare now and take precautions to avoid paying unnecessary costs such as comparing travel insurance. If you fell ill overseas and were charged US$2,000 for medical expenses, that could cost over AU$2,322.
“Most of these costs can be easily avoided by taking out travel insurance before you leave,” said Mrs Hutchison.
The finder.com.au Australian Dollar Survey also found that all seven panelists who provided a longer-term forecast expect the Australian Dollar to fall even further from next year.
Five of these experts are forecasting the Aussie Dollar to fall between US$0.80 and US$0.82, while the lowest forecast was by Noel Whittaker, Executive in Residence and Adjunct Professor at QUT Business School, who is expecting the Australian Dollar to hit US$0.70 in 12 months.
The majority of experts in the survey expect the Australian Dollar to hit a trough in 2015, while two expect to see the low point in 2016.
“Travellers might also want to consider locking in your foreign currency exchange rates if you’re concerned about the falling Australian Dollar, by opening a travel money card.
“While there are usually fees involved such as ATM withdrawal fees and reload fees, the benefits of using a travel card are that you can lock in your exchange rates when you load currencies onto the cards so if the rate falls further you won’t need to worry. You can also load up to 13 different currencies at once.
“Online shoppers who are planning to buy Christmas gifts from overseas retailers should also check the exchange rates before making a purchase because this can make a big difference to the final cost of the products.”
|Name||Company||How low will the Australian Dollar go by the end of the year?||How low do you think it will go and when it will hit this?|
|Shane Oliver||AMP||US$0.82||US$0.80 within the next 12 months, $0.75 within the next two years|
|David De Ferranti|| FXCM ||US$0.83||N/A|
|Glenn Levine||Moody's Analytics||US$0.84|| US$0.80 by mid 2015|
|James Glenn||NAB||US$0.88||US$0.80 by 2016|
|Garry Laurence||Perpetual Investments – Equities||US$0.85||US$0.80 by the end of June 2015|
|Noel Whittaker||QUT Business School||US$0.85||US$0.70 in 12 months' time|
|Janu Chan||St George Bank||US$0.85||possibility of going lower than US$0.82, end of 2015|
|Lisa Montgomery||Mortgage and Consumer Finance Expert||US$0.84||US$0.82 by mid 2015|
Disclaimer: the forecasts, projections and other predictive statements by the panel of experts are assumptions based on currently available information. These forecasts are based on industry trends and economic factors that involve risks, variables and uncertainties. No guarantee is presented or implied as to the accuracy of these forecasts and consumers are advised to read product disclosure statements and understand if financial products are right for them before signing up.
For further information
The information in this release is accurate as of the date published, but rates, fees and other product features may have changed. Please see updated product information on finder.com.au's review pages for the current correct values.
finder.com.au is Australia's most visited comparison website and has helped over 4.8 million Australians find better credit cards, home loans, life insurance, shopping deals and more since 2006. finder.com.au compares 250 credit and debit cards from 31 providers, over 300 home loan products, and information from 13 life insurance providers as well as online shopping promo codes, mobile phone plans, travel insurance and more. One Australian every five minutes is using finder.com.au to find better (Source: Google Analytics).