USD FX Rates Analysis

So initially I wanted to increase our US Investments by about 10K. Based on the past few months, USD FX rate has dropped. However, after assessing our 2023 FX Rates Buys and Sells, the FX Rate as of to-date is still out of range.

[BUY]

Exch Rate 1.355 / Total AUD: 4.7K / USD Fx: 3.5K / Date: JAN-31

[SELL]

Exch Rate 1.412 / Total AUD: 4.9K / USD Fx: 3.5K / Date: FEB-22

Now if I compare the FX Rates as of to-date, we have the following:

[BUY](Preliminary)

Exch Rate 1.55 / Total AUD: 7.7K / USD Fx: 5K / Date: JAN-15

[SELL](Preliminary)

Exch Rate 1.438 / Total AUD: 7.2K / USD Fx: 5K / Date: JAN-15

In 2023 (Jan & Feb), the Buy/Sell spread is about 4%. Today’s rate, the Buy/Sell spread is about 7.8%. If we then compare JAN23, and JAN24 BUY Rate, the spread is 14.4%. However, the SELL Rate spread is 1.8%. Based on this assessment, we shouldn’t be BUYing USD based on the BUY/SELL spreads, as well as the JAN23 spreads. If we instead decide to SELL USD, the spread is under 2%.

Based on our BUY/SELL spreads assessments, it’s a HOLD. I’ll reassess our EK Financials to not increase our US Investments.