buying american dollars

[mk3pete]

i was speaking to a friend at work about buying US dollars while its so weak compared to the aussie doller
it seems to me it might be a good idea to make some money 6 months to a year down the track when it drops again, who knows it might even drop down to 60 cents again
anyone got experience with this?
is it a good idea?
what do i have to look out for if i do this?
where would the best place be to buy, im assuming id have to make an online trading account
cheers pete

[scoob02]

Hey mate

I live overseas and occassionally keep an eye on the AUD forex rates for sending cash back home.

You will have to set up an online USD account with your bank or another one that offers the service..

I use a website called Oz Forex Foreign Exchange | Live Exchange Rate | Currency Rates
which you buy the amount of USD you want and then deposit the appropriate AUD funds into their account, within 2/3 days they will deposit the amount of USD you have purchased into your USD account...its a great service and the rates are far better than that of banks (but do check) or those foreign exchange outlets in shopping malls or airports that offer a poor rate and charge commisson

There are various websites on forex trading but they generally have a short term view, long distance forex forecasting is like predicting the weather...i visit Forex @ DailyFX - Currency Trading News, Forex Trading News, FX News, Forex News for their views

Is it a good idea? yes/no really...you have to ask yourself whether you will get a better return than the 'risk free return' of putting your cash into one of those high interest online savers...6+% pa isn't going to help you trade your VR6 into an R32 but it bad...

Any USD funds in your account wont earn any interest as the interest rate there is zero...(and the reason for stock market, AUD appreciation but thats something different)....

maybe hedge your bets 50%/50%