Australians working online, let us rejoice, we’re all about to take a paycut

March 20, 2007

SMH: Aussie dollar hits 10-year high

How do I respond to this without droping the F word over and over and over again. Sure, it might make it cheaper to visit the US, but ALL of my income at the moment is in US Dollars. And lets talk rip offs, I ordered a couple of new boxes yesterday, Paypal converted at 77c and yet I read today the exchange rate is 80c and climbing. For everyone else: sure, imports become cheaper, but exports become less competitive, and did I mention interest rates? The AUD is up because the market is factoring in an interest rate rise in Australia in the very near future, every 0.25 basis points is roughly $45 AUD extra a month on my mortgage, so I lose twice over. GRRRRRR!

6 responses to Australians working online, let us rejoice, we’re all about to take a paycut

  1. Haven’t looked at how bad it is for you, but the UK pound is strong against the US dollar as well, and have a similar issue with payments. Fortunately a lot of payment is now in sterling, except one which bizarrely goes VIA the US even though the company, and I, are in the UK. Argh!

    I hate exchange rates.

  2. All i can say is, move to Thailand mate 🙂

  3. I’m in the same boat.

    but still.. I’m working on $US rates, which are about 50% higher than the aussie ones in the first place, so I really shouldn’t complain too much.

    Thailand would be an option, but the timezone is a bit worse, so would be waking up at 2am to talk to the US.

    a small pacific island with a fat pipe would be better.

  4. The worst thing for me Ian is that the cross rates sell/ buy have blown out as well, I’m still getting 78c on Paypal for conversion, and yet I banked a USD check for $106 today, in exchange they calculated it to $116 AUD. I wish I was in the FX game, I’d be making a million

  5. have you thought of opening a $USD based account? then you can keep the money in $USD until the rate goes back down again (if you think it will). This might help if you do a lot of $US based payments as well as receiving it.

    I’ve heard good things about http://www.xe.com/fx/, but it requires your payers to wire you funds, instead of cutting you a cheque (which takes about 6 weeks to clear anyway) they have less of a spread than a regular bank/paypall as well.

  6. I’ve looked into it a little bit, but it seems a little involved for an Australian based in Australia, certainly post 9/11 opening a US bank account involves turning up at a US based branch 99.99% of the time from what I can gather. Oddly enough I had a US bank account back in 98, but it was closed due to lack of activity about 2 years later.