HKD/AUD and cash savings

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  1. #1

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    HKD/AUD and cash savings

    With the Aussie dollar down again, I've decided to transfer some money into my Aussie bank account and then transfer it to my ING Direct savings account which I used to actively use when I was back in Oz.

    Basically when I arrived in HK, the Aussie dollar bought about 6.2 HK dollars. It peaked at over 7.5 last year and to date I have been reluctant to transfer any of my salary earnt in HKD to my Aussie account in light of losing out because of the exchange rate. However, it has recently gone down to below 5.0.

    Accordingly I have just moved some HKD into my AUD account and plan to move that into my ING account which currently offers 5.5% variable rate of interest. This is nothing to be sneezed at I think and it seems to me that this is a very good deal, considering that my HSBC savings account here offers a miniscule interest rate of way less than 1% (even if you have hundreds of thousands of dollars in there). The ING account is very liquid and there are no transfer or any other fees. I also understand that the interest rate on tax loans here are considerably less than 5.5%.

    I am also planning on waiting until the Aussie dollar goes up again and hopefully also get the upside when this happens. I have looked into the history of the two exchange rates in the last 10 years. It has been between about 5 and 7.5 in the last 5 years.

    Anyway, I thought I'd share this - eg if anyone has any other comments. I am well aware of currency exchange risks (in 2001 the Aussie dollar hit a low of about 3.6 and certain big names have been hit by bad calls), but on balance I am pretty comfortable with what I am doing (!)

    http://indexmundi.com/xrates/graph.a...stday=20081010

    Last edited by muse07; 27-11-2008 at 04:12 PM. Reason: added exchange rates graph

  2. #2

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    I'm doing much the same, with a mix of AUD, NZD and GPB for personal reasons, for much the same reasons. It can't be a worse strategy than moving all my cash into shares in August 2008.....


  3. #3

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    I have recently used HKD to purchase a s**t load of AUD and it's currency I need any way. When the AUD goes back up (and it will) I'll cash in - ha ha ha! Helps to be able to move the AUD between Oz and HK without charge too.


  4. #4

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    Quote Originally Posted by MovingIn07
    I'm doing much the same, with a mix of AUD, NZD and GPB for personal reasons, for much the same reasons. It can't be a worse strategy than moving all my cash into shares in August 2008.....
    Don't worry. You have done *much* worse and invested money at just about the market peak like I did in September last year!

  5. #5

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    Er I meant to say "could" have done much worse...! I am pretty confident I am on a pretty safe bet now, though I keep on thinking there must be a catch!

    Last edited by muse07; 27-11-2008 at 11:55 PM.

  6. #6

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    If I have learnt anything this year it is that there are NO safe investments! I also own property in UK, NZ and here ... falling like a stone; had shares in Northern Rock (the UK bank that collapsed); even my gold went down (purchased at the same time as the shares as it is supposed to move in the opposite direction and hence form a hedge....)

    But yes - I too feel happier about taking a punt on the A$, NZ$ and GBP at these rates, given I have liabilities in each of those currencies anyway....


  7. #7

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    Going by your ability to predict the future (NOT) I should be selling those Ozzie Dollars like hot potatoes.


  8. #8

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    i am long aud as well, but I think if the market continues to behave the current volatile manner it will be a further bit down (10? 15%?) before it recovers.

    USD is going to be bad.. but tat said it will be a while for the USD hogger to move away...


  9. #9

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    same here, all HKD and SGD I can spare are heading home to AUD

    I have no idea why the aussie is so low. inflation is going to rip through that country now.


  10. #10

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    Actually that reminds me, can anyone predict when the Aussie will go up again and if?

    I cannot believe the USD is so high when all the money bugger ups are coming from the US.


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