Cut loss on Australian Dollar Investment

Australian dollar (commodity currency) was badly affected in recent years with the slowdown in the China economy. Australian dollar was at its highest at S$1.305 on 11 April 2013. Between then and now, Australian dollar lost 20.8%. See table below.

Date AUD/SGD Change %
28 Sep 2012 1.280 NA
11 Apr 2013 1.305 +1.9
27 Jan 2014 1.112 -14.7
8 Sep 2014 1.174 +5.5
19 Sep 2014 1.139 -2.9
26 Sep 2014 1.118 -1.8
3 Feb 2015 1.036 -7.3
18 Mar 2016 1.033 -0.3

Source: Yahoo!

At the start of 2016, Australian dollar was even below $1.000 parity with Singapore dollar.

I had waited long enough, and I had decided to cut loss on my Australian dollar fixed deposit yesterday. The contract rate was S$1.028 for A$1. The loss realised was 14.3% on cost of investment over 34 months. I realised half of my A$ deposit and kept the other half. In this way, my exposure to Australian dollar is now halved. To tell the truth, I am more relieved that I took this action.

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