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USD vs AUD vs CAD


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China.

 

 

 

The US is eye ball deep in debt to China. So Obama will; huff and puff but he is not going to put any tariffs up against China. He and Hilary are actively still to this day are begging the Chinese to buy even more T-bills.

 

 

 

Ozepete, yes I agree that the Labour govt would not give arse, but dont under estimate the Americans, they are getting really pissed of with the Chinese and would not suprise me if they bought in tariffs against Chinese imports, if that happened less exports from Australia to China resulting in higher unemployment in Australia, think about it.

 

 

So who's going to buy all those US Treasury bonds to keep their economy afloat? China holds close to $1 trillion worth of T-bonds.

 

 

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If you want to protect your bank account, I recommended hedging by putting half your dough in the PHP. That way if the Peso appreciates or depreciates, your net will be the same regardless. Always p

Having lived in Manila for 5 years and 1.5 years here in Cebu City and been coming here since 1978 I would not invest one centavo in the Philippines, been there and done that 20 yrs ago, quite happy j

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I followed the SteveMatrix advice and transferred a few aussie dollars to my peso account down at HSBC and got a very nice rate so now I don't have to think about rates for some time. Thanks for the reminder

If you want to protect your bank account, I recommended hedging by putting half your dough in the PHP. That way if the Peso appreciates or depreciates, your net will be the same regardless. Always protect your savings by hedging. You'll sleep better at night rather then worry which way the Peso is headed.

 

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Sorry to go off topic but how do you see the Singapore dollar holding against the USD? It has been pretty steady with both the USD and Peso....

I earn USD and have Aussie, USD, Singapore and Peso accounts just wondering which one to pick for this months salary.

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TheMatrix

The USD/SGD has been on a slippery slope to the South since June with no sign of letting up. Pundits are calling a bottom here, but I think we have further to go. Here's a chart so you can see it yourself:

 

USDSGDc.png

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TheMatrix

But, that decline of the USD/SGD is fueled by the decline of the USD. All dollar currency pairs are dropping, but Asian currencies are appreciating rapidly due to our strengthening economies compared to the rest of the world. Buying the Singapore dollar would be wise. Go for it.

 

 

 

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Thanks for the tip Steve, i will go with SGD this month and see how next month pans out.

I remember the 97'-98' Asian financial crash all too well, it was a very interesting time to play with currencies and gamble with some of the interest rates that some banks were offering in Indonesia, i was getting 48% per month from a bank so sat on that and lived off the interest for a year :)

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TheMatrix

Thanks for the tip Steve, i will go with SGD this month and see how next month pans out.

I remember the 97'-98' Asian financial crash all too well, it was a very interesting time to play with currencies and gamble with some of the interest rates that some banks were offering in Indonesia, i was getting 48% per month from a bank so sat on that and lived off the interest for a year :)

 

You can't go wrong with buying the SGD. Asian economies are accelerating their undervalued currencies and there is much to the upside. Buying and holding any Asian currency right now would be a good 1-3 year investment IMHO.

 

 

 

 

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Edited by SteveMatrix
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Julian C Thong

Selling AUD and buying USD, are you mad? :-)

 

I sold half my UKP last year and bought CAD and then invested that in gold. Better than in the bank earning zero or a smiggen more. Up 8% on the currency and 28% on the gold. Wish I'd done it sooner.

 

Selling AUD to buy an asian currency. Umm, the AUD has certainly done well over the last 2 years but so has SGD over the last year. Reports that the Peso is 70% undervalued make it tempting but on balance, if you are thinking long term I guess SGD. Personally I'd be happy as I am.

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smokey

forget forex i am buying a 150 sq meter house with a pool in phonix az for 60,000 and when i am done staying there i will rent it for 800 month.... 20% down and rest in a 15 year loan at 4.7%

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Selling AUD and buying USD, are you mad? :-)

 

I sold half my UKP last year and bought CAD and then invested that in gold. Better than in the bank earning zero or a smiggen more. Up 8% on the currency and 28% on the gold. Wish I'd done it sooner.

 

Selling AUD to buy an asian currency. Umm, the AUD has certainly done well over the last 2 years but so has SGD over the last year. Reports that the Peso is 70% undervalued make it tempting but on balance, if you are thinking long term I guess SGD. Personally I'd be happy as I am.

 

What's UKP? Maybe you meant GBP (Pound Sterling)?

 

You're probably right about gold; these are turbulent times for currencies, and gold (and even silver) are a safe haven. I don't really believe that the Peso is undervalued by 70%; a figure which is based on Purchasing power parity theory. Besides, if the Peso increased in value by that much, it would slaughter the Philippine economy.

 

Andrew

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forget forex i am buying a 150 sq meter house with a pool in phonix az for 60,000 and when i am done staying there i will rent it for 800 month.... 20% down and rest in a 15 year loan at 4.7%

 

What would you be paying in overheads on that?

 

Andrew

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Julian C Thong

Selling AUD and buying USD, are you mad? :-)

 

I sold half my UKP last year and bought CAD and then invested that in gold. Better than in the bank earning zero or a smiggen more. Up 8% on the currency and 28% on the gold. Wish I'd done it sooner.

 

Selling AUD to buy an asian currency. Umm, the AUD has certainly done well over the last 2 years but so has SGD over the last year. Reports that the Peso is 70% undervalued make it tempting but on balance, if you are thinking long term I guess SGD. Personally I'd be happy as I am.

 

What's UKP? Maybe you meant GBP (Pound Sterling)?

 

You're probably right about gold; these are turbulent times for currencies, and gold (and even silver) are a safe haven. I don't really believe that the Peso is undervalued by 70%; a figure which is based on Purchasing power parity theory. Besides, if the Peso increased in value by that much, it would slaughter the Philippine economy.

 

Andrew

 

Yup sorry GBP.

 

Long term FX movements are glacial but the 70% gives an indication of direction in my view.

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sandwindstars

Let me venture into this one although SteveMatrix seems to have all the right (for me) insights. CAD, I'm not sure, when you factor in its dependency on the US. At least 80% of Canadian exports is to the US, primarily resources. AUD I think has a buffer because just like Canada, rich in resources but it is directed toward Asia. USD well I don't know but I think 2015 (according to some on this side of the world) is when we see an upswing (or not.) US has been burning money on its wars, and heavily into consumption rather than production. My bet AUD will stay stronger than the other 2 carried by the wake of the Asian economies. (I see it has surpassed the CAD already, first time I've seen that.)

 

Personally, I'm still behind since I did my transactions in 2008 when the peso was around like P40 and change. I suspect there's a bit of spin in that Bloomberg article. The pesos undervalued 70% is too generous. Last year, I read it was around 30% undervalued. The economy didn't improve that fast. I don't know what the money gurus are trying to create here.

 

Enjoyed reading all your inputs. If anyone has pesos, look at RTB's (retail treasury bonds) for safe investment, good interest. Last August, I wanted to buy 10 year, 7.5% (net maybe 5.5%), lower for shorter term but sold out quickly.

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smokey

forget forex i am buying a 150 sq meter house with a pool in phonix az for 60,000 and when i am done staying there i will rent it for 800 month.... 20% down and rest in a 15 year loan at 4.7%

 

What would you be paying in overheads on that?

 

Andrew

 

 

well the house payment is under 300 us and there is no HOA so i will do just fine

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The Mason

forget forex i am buying a 150 sq meter house with a pool in phonix az for 60,000 and when i am done staying there i will rent it for 800 month.... 20% down and rest in a 15 year loan at 4.7%

 

Damn right! About 3 years ago my plan was for my then fianc

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