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Top 5 travel destinations for a low Australian dollar

May 7, 2016 Travel Deals No Comments Email Email

The Australian dollar has fallen significantly following the Reserve Bank of Australia’s (RBA) decision to cut interest rates to 1.75%, now trading at around 74 cents in the US dollar.

Foreign exchange and commodities trading platform easyMarkets reveals the 5 hot spots for travel still providing value for Australians.

Faced with an AUD with less purchasing power, easyMarkets Market Analyst James Humpherson says Australians travelling overseas need to rethink their destinations.

“The recent fall in the AUD means that it is more expensive to purchase other currencies and travel to other countries,” Mr Humpherson says.

However, five destinations where the AUD still goes a long way include:

  1. South Africa – since May 2015 the AUD appreciated 14.9% against the South African Rand (ZAR).
  2. Russia – since May 2015 the AUD appreciated 23% against the Russian Ruble.
  3. Brazil – has gained 13% against the Brazilian Real since May 2015.

“It’s a great time to be heading to the Rio Olympics in August,” Mr Humpherson says.

  1. Argentina – The AUD has strengthened by over 50% against the Argentinian peso since May last year.
  2. Turkey – Since its low in October 2008, the AUD has strengthened by around 133% against the Turkish Lira.

easyMarkets believes that in the coming months, the AUD is likely to head further south, to around 0.70 – 0.72 level.

“Australian travellers will need to be even more cautious when it comes to choosing their next overseas holiday destination,” he says.

Japan and Europe prove poor value for Aussie travellers

Over the last year, the Japanese Yen has strengthened 21% against the AUD.

“Despite increased monetary stimulus introduced by the Bank of Japan (BoJ), whereby interest rates were cut, the Yen has continued to strengthen,” says Mr Humpherson.

In some more bad news for Australians considering a European adventure, the Euro has gained 10% against the AUD since the beginning of the year.

“This has been driven by AUD weakness and improvements in economic fundamentals within the Eurozone.”

“It has therefore become increasingly more expensive for Australians to travel to Europe since the beginning of the year,” he says.

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