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USD AUD FX April 2019

Here is a chart on the foreign exchange (FX) fluctuations in the USD AUD April 2019 on the value of the mortgage repayments, on an Australian mortgage as of the end of November 2018.

For this example, assumed an Australian Mortgage of $400,000 (AUD). Amortized over 30 years, with a 4.50% interest rate. The AUD monthly repayment is $2,026 (AUD).

If the borrower was to enter into the Australian mortgage in July 2016. The USD value of repayment would be $1,540 (USD) when the current spot rate is applied.

In this example, a fixed USD repayment is represented by the red line (applying the July 2016 spot rate).

The blue line represents the historical USD value of the mortgage repayment between the USD and AUD from July 2016 – to April 2019.

As you can see, the AUD represents a volatile currency and can have a significant impact on the FX repayment rate.

When sourcing USD funds to make repayments on the Australian mortgage of AUD $68,909 over that period.

Including spot rate repayments of a high $1,633 USD in January 2018, to a low spot rate of $1,429 USD in April 2019.

Since March, the AUD has depreciated by 0.9% during the month of April 2019 with a monthly USD repayment of $1,429.

Jeremy Harper is an Expat Mortgage Broker