It’s no secret that the cost of living crisis has stunted travel plans for many Aussies. So if you’re in your penny-pinching era, what would be the smartest destination to go to based on the Aussie dollar exchange rate?
Probably the best way to begin would be to address where you shouldn’t travel.
Anyone wishing to grace the UK with their presence this Euro Summer should be warned that the exchange rate to Britain’s pound sterling (GBP) is the shittest it’s been in a long while.
One Aussie dollar has been buying between GBP 0.52-0.53 since the beginning of June per Google Finance.
Compare this to September last year when that same amount would’ve bought you just over GBP 0.60.
The AUD > GBP conversion is truly in its flop era.
Similarly, the Australian dollar is predicted to stack up just as badly against the USD in the coming months.
Despite one Aussie dollar netting you USD 0.73 in October of last year and currently sitting around USD 0.68 in mid-June, institutional forecasts by the Commonwealth Bank reckon it could dip to just USD 0.62 during the September quarter per the Sydney Morning Herald.
Analysts also reckon it’s a slim chance of the exchange rate pushing past the mid-60s until March 2024.
Again, we’re in flop era territory.
So where should we actually spend our hard-earned cash?
Malcolm Wood, Head of Asset Allocation at Ord Minnett (sounds like a fake job but ok), reckons Japan is a solid option based on the exchange rate.
“The broad-based US dollar strength puts the Yen at weak levels in real terms, especially given the lack of inflation in the Japanese economy in recent years,” Wood told the SMH.
“Even if the Aussie doesn’t do so well, Japan is still likely to be a lot cheaper to visit than the US.”
“And in China, we’ve seen the Renminbi weaken quite significantly this year. So it likely makes for good value for money if people are interested in travelling to China again.”
New Zealand is also on the menu, with Forbes describing it as “among the weakest performing major currencies in 2023”.
To round out the selection, Nine’s finance guru and the only man I can listen to about economics without drifting off to sleep, Chris Kohler, reckons Argentina, Egypt and Türkiye offer quality bangs for our Aussie bucks.
So there you go!
International travel plans sorted…?
If all else fails, there’s also our big beautiful Aussie backyard to explore.
