The Australian dollar’s long dive may see the local currency dip into the 50 US cent range before coming to rest, say some pundits, with consumers, online shoppers and overseas travellers likely to experience sharp price rises.

The bearish outlook on the Aussie currency is being fuelled by expectations that other developed economies are likely to grow faster in the next few years while the local economy tries to adjust to the downturn in commodity prices.

The currencies of commodity-based economies, such as Australia, are also expected to slide further as the US begins to increase interest rates.

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Despite a brief crest, experts anticipate further crashes. Photo: Getty

Notwithstanding, the Australian dollar rallied on Thursday against the US currency after the release of lower-than-expected jobless figures.

But most currency analysts expect the rebound to be short-lived, with the Aussie expected to lose ground against most major currencies, including the US dollar, in 2016.

The sliding currency is having a big impact on the decisions of investors and consumers.

The Aussie dollar has already fallen more than 20 per cent against most major currencies since 2013 and this has prompted most funds to increase their investments in overseas equities to stem the impact on members’ returns.

Consumers can shield themselves

A higher dollar means you fork out more for popular consumer goods. Photo: Getty

While there are some respected analysts who are suggesting that the Aussie may be close to bottoming, a leading global currency services provider, Macro Currency, indicated on November 11 that it could fall below 60 US cents.

If that happens, the implications for consumers could be significant:

• The cost of most imports, including cars, computers and televisions would probably rise;

• The cost of taking an overseas holiday will increase because travellers will need more Australian dollars to pay for accommodation and other services that are priced in foreign currencies; and

• If you’re planning to transfer a fixed amount of foreign cash overseas to a relative it will cost you more.

The weakening currency means it might be cheaper to buy high-value consumer items now, rather than in six months when the dollar might have slipped further.

If you’re planning to take a foreign holiday some time in 2016 you might consider pre-paying your air tickets and accommodation now.

You can also convert your spending money from Australian dollars into the currencies of the countries you will be travelling to.

Pre-paid travel cards allow you lock-in today’s exchange rates and draw down up to three years later.

While the fees on travel cards can be hefty, most can be loaded with money in different currencies. For example, ANZ’s travel card can be loaded with up to 10 currencies.

Who offers the best rates?

According to research by financial products comparison site Mozo.com.au, the cheapest way to send money overseas or buy foreign currency before you leave the country is to use an online currency exchange provider.

The following table shows how many Australian dollars were required to buy $US10,000 on November 12 through different providers.

If you went through one of the major banks, on average you would have handed over $14,900 in Aussie currency to get $US10,000. Moreover, in most cases you would have to wait up to five days for money transfers to clear.

However, if you had converted your money through World First the total cost would have been only $14,043.

That’s a saving of $857.

According to Mozo, World First also clears overseas money transfers within two days.

Research conducted by Mozo shows that Australian consumers can garner even bigger savings by converting local money to other foreign currencies through providers such as World First and TorFX.

To find out more about the cheap cost of using an online currency exchange, check out the Mozo website here.