Friday, April 22, 2011

How to take advantage of a strong Australian dollar

Australians can take advantage of favourable currency exchange rates by looking overseas for some great buys.





The Australian dollar has hit a new record high this month, soaring to US$1.06 as of mid-April. Despite speculation that the recent Queensland floods would substantially impact its valuation, the strong Aussie dollar looks like it's here to stay awhile. Australians can take advantage of favourable currency exchange rates by looking overseas for some great buys.
Buying Online From Overseas
The internet has made it easy to make purchases from overseas in foreign currency. While Australia lags behind other countries when it comes to online buying, experts are predicting that the recent strength of the Aussie dollar will have online expenditure figures soaring in 2011.
Books, CDs, electronics, gifts and clothing are just some of the goods that Australians are snapping up from international stores and having shipped to their door. Technology items such as computers, laptops and cameras are popular buys for their higher price points and the fact that they don't incur an import tax, unlike cars. Remember, that if you are shopping from overseas to check for any additional charges for international buyers and that the seller does indeed ship to Australia.
Travelling Overseas
Have you always dreamed of wandering through the beautiful cities of Europe or catching a glimpse of the bright lights and movie stars in the US? Now is the perfect time to head overseas and do some international travelling. With airlines competing hard to offer the best fares, Australians will find their dollar going much further at popular destinations like the States. There's no better time than now to plan your trip as experts recommend travelling sooner rather than later.
Meanwhile, if you have a trip planned in the next 6 months or so, it could be worth stocking up and purchasing a portion of the local currency now rather than waiting until you arrive.
Smart Investment & Business
Investors should take a good look at where their investment dollars are tied up and the impact the currency rates could have on business returns. As is the case with most money matters, a strong dollar can have both positive and negative effects depending on the vertical and the nature of a business's operations. Overall, it's a good time to consider foreign investments while some Australian companies may be able to take advantage of the strong dollar by sourcing cheaper resources and suppliers from overseas.
However, other local businesses, especially exporters, may suffer as a result of higher price points that make them less competitive in the international marketplace.
When it comes to getting more bang for your buck, it's about knowing where to spend your money to extract the most value. Money experts are expecting the Australian dollar to remain strong for the coming months so it'll be smart to take advantage of these great exchange rates soon.
Visit Yahoo!7's Currencies Centre or Forex Education Centre for more information.

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