f 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 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$1.67
Closed the week at AU$1.68
Difference of +1 cent per Pound – You’d get an extra AU$1 for every £100 you moved overseas.
US Dollar to Australian Dollar (USD/AUD)
Opened the week at AU$1.34
Closed the week at AU$1.35
Difference of +1 cent per US Dollar – You’d get AU$1 more for every $100 you moved overseas.
Euro to Australian Dollar (EUR/AUD)
Opened the week at AU$1.42
Closed the week at AU$1.43
Difference of +1 cent per Euro – You’d get AU$1 more for every €100 you moved overseas.
New Zealand Dollar to Australian Dollar (NZD/AUD)
Opened the week at AU$0.94
Closed the week at AU$0.95
Difference of +1 cent per Australian Dollar – You’d get AU$1 more for every AU$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.
- The latest Reserve Bank of Australia policy meeting – although investors do not expect to see any change in interest rates at this time, any dovish commentary from policymakers could undermine the appeal of the ‘Aussie’.
- Third quarter Australian Gross Domestic Product – forecasts point towards a modest slowing in growth on the year, something which could reduce confidence in the underlying strength of the domestic economy.
- Chinese inflation data – higher inflationary pressure would indicate that the world’s second largest economy remains resilient, suggesting that growth remains positive and likely pushing up base metal prices as a result.
Australian Dollar Forecast: Next week the Australian Dollar is forecast to weaken against the US Dollar, which remains supported by expectations of an imminent Fed rate hike. Meanwhile, the ‘Aussie’ is expected to extend its gains against the New Zealand Dollar if market risk appetite strengthens.
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