If you’re planning a move to Australia you’ll have to get to grips with how money in the nation works. The country uses Australian Dollars, but what does that mean for you?
To help you get your head around how the Australian Dollar compares to your home currency, we’ve listed how much a few everyday goods would cost in Australia.
(Average prices are taken from Numbeo)
- Meal, Inexpensive Restaurant: AU$ 18.00
- Average McDonalds Meal: AU$ 10.00
- Regular Cappuccino: AU$ 4.13
- 1 Litre of Milk: AU$ 1.40
- 1 Loaf of Bread: AU$ 2.60
- 1 Month’s Gym Membership: AU$ 63.19
So that’s how much things cost in Australia, but how much money will you actually have to spend once you get there? Exchange rates are always fluctuating, and the value of the Australian Dollar can be effected by everything from iron ore prices to news from the US.
This means you could get more or less for your money when transferring funds overseas depending on how the Australian Dollar is doing.
So, what difference have we seen in exchange rates this week?
British Pound to Australian Dollar (GBP/AUD)
Opened the week at AU$1.68
Closed the week at AU$1.68
Negligible difference – The difference between moving £100 to Australia at the end of the week compared to at the beginning would be a few cents in total.
US Dollar to Australian Dollar (USD/AUD)
Opened the week at AU$1.36
Closed the week at AU$1.35
Difference of -1 cent per US Dollar – You’d get AU$1 less for every $100 you moved overseas.
Euro to Australian Dollar (EUR/AUD)
Opened the week at AU$1.44
Closed the week at AU$1.42
Difference of -2 cents per Euro – You’d get AU$2 less for every €100 you moved overseas.
New Zealand Dollar to Australian Dollar (NZD/AUD)
Opened the week at AU$0.95
Closed the week at AU$0.94
Difference of -1 cents per Australian Dollar – You’d get AU$1 less for every NZ$100 you moved overseas.
What Will the Australian Dollar do Next Week?
If you’re going to need to move money abroad in the near future it pays to stay on top of the latest currency news. Here are the 3 main events likely to impact AUD next week and a brief forecast for what the currency might do next.
- Iron ore prices are continuing to rally, which benefits the Australian economy as ore is the country’s biggest export; should they continue the do so, AUD will rise, but if the rally slows, AUD is likely to slump.
- The Chinese manufacturing sector fuels demand for Australian iron ore – the Australian Dollar is likely to rise or fall on Thursday depending upon whether the latest measure of industry activity in the Asian superpower slows or accelerates.
- Perhaps the most important piece of US data is set for release on Friday, which may improve the odds US interest rates will rise soon, which would strengthen USD and weaken AUD.
Australian Dollar Forecast: Next week, USD/AUD is likely to continue strengthening as investors hope for developments which would boost the US Dollar. GBP/AUD is likely to fall on Brexit worries, EUR/AUD may soften as an important Italian referendum approaches and NZD/AUD could edge lower due to the continued uncertainty over earthquake damage in New Zealand.
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