Tuesday, September 9, 2008

Gold Coast LifeStyle and Aussie Dollar

Gold Coast lifestyle from Brett Clements on Vimeo.

Queensland, Australia - Seeing this clip reminds me of my fond memories there...
Really a wonderful place to stay for extended periods.

Oh yes, which brings me to my opinion of the Aussie Dollar. It has depreciated a lot against the USD ('coz of the USD dollar strength, the impending economic global slow down). Since SGD is pegged against a basket of currencies including USD. AUD have also depreciated quite a bit to SGD. The current price of around $1.17 is within the 5 year low of $1.15.

Assuming you have some cash for Fixed Deposit, you could place it in australian dollar to earn a higher interest rates than SGD deposit. If you have a timeframe of 2-3years, you can also enjoy the potential appreciation of the AUD against SGD when the global economy demands commodities for their growth again. It is a safe bet as economy cycle exists. Further, SGD is unlikely to appreciate so much against AUD or any other currencies as a bulk of our economy is export-related and MAS moderates our currency band to maintain the competitiveness of our export trades.

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