Will The A$ Go Lower

Julius loves being a dad…and he’s a damn good one, too.

Just before their first son was born, he and his lovely wife made a pact: they wouldn’t spend a fortune on school fees.

Instead, the paramedic had another idea.

What if they spent the school fee equivalent on overseas adventures the whole family could enjoy?

Trips that would immerse their kids in different cultures, teach valuable life lessons and most importantly, create lifelong memories.

His wife jumped at it.

The thought of weaving their little tribe closer, one trip at a time, sealed the deal for her.

So for the next ten years, they squirrelled away a portion of their wages every month into an account they nicknamed, ‘Making Memories’.

But this week, their holiday plans hit some unexpected turbulence.

Not only have tariffs frightened the daylights out of the stock market, but they’ve also knocked the Aussie dollar below 60 cents (before bouncing back slightly).

And now my mate is wondering if the A$ is going to sink even further.

You see, six months ago he paid for an overseas trip coming up in October, but he still has to convert the spending money.

Should he lock in the exchange rate now—or hold out and hope?

In my opinion, that’s probably not the best question to ask, although it’s the most logical one.

A better question would be, can you afford the A$ to go any lower?

If it’s a ‘no’, then lock in the exchange rate now.

There’s plenty of speculation around what the tariffs will do to the A$.

Like most, I expect the tariffs to escalate into a trade war which will ultimately lead to a currency war.

Therefore, I expect the A$ to hit $0.50

But opinions are like noses, everyone has one. So I could be wrong.

If you have holiday plans or trade overseas, don’t try and guess what the Aussie dollar will do, just know what you can afford.

And then you can concentrate on fun stuff, or whatever fills you up.

Have a great weekend!

Adam

Back paddock – Children spell love…T.I.M.E. – Dr A.Witham