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Assuming the AUD will continue to decline, what's the best way to prepare for a future OS purchase?

Discussion in 'Property Market Economics' started by jaybean, 4th Mar, 2016.

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  1. jaybean

    jaybean Well-Known Member

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    I've been giving serious thought to purchasing something in Hong Kong. I believe a further cool down in the China market will have a strong impact on Hong Kong. I believe we'll see this play out in 2-3 years.

    How would I go about hedging currency wise?

    I was thinking: park my money in an international LIC, or;

    Shift my money over now and park in a HK currency LIC.

    This all assumes the AUD will continue to fall against the USD (which the HKD is closely tied to). I'm sure there are many better approaches hence this post.
     
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  2. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    What's the correlation btwn HKD and USD?

    If it's really similar, sell the AUD/USD to hedge. The cost will be cheaper than selling the AUD/HKD.

    Or move your cash now as you've mentioned.
     
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  3. MarkB

    MarkB Some guy on the internet Premium Member

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    The screen you are reading.
    No doubt you would be encouraged by the recent appreciation of the $AUD.

    Which is somewhat amusing as only a couple of weeks back John Edwards (RBA Board Member, and formerly Paul Keating's Chief Economic Adviser) said he would feel more comfortable with the $AUD at around $USD 65c.

    But iron ore has been surging and coupled with some solid economic data, some economists are predicting the next move in interest rates will be up (they've been predicting it for a while, mind you).

    But I'm sure you've nonetheless got a smile on your face.
     
  4. big max

    big max Well-Known Member

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    I think moving cash to HKD and buying in hk makes a lot of sense.
     
  5. Tekoz

    Tekoz Well-Known Member

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    one thing for sure is to buy Gold bullion.
    you can't go wrong in holding Gold because that's the world most valuable currency.

    If Gold is too expensive, you can buy Silver.