Why not switch to AUD?

Yeah...sounds like solid advice but still you haven't said what the risk is.

Except for the currency value going the wrong way (which happens slowly) what risk is there?

I'm not talking about gearing up through futures contracts, just plain vanilla exchange. So if AUD devalues 5% against USD over a few months that would be a loss but not a ruin type loss.

That's what I'm worried about (ruin) and what so far no one has addressed.

Thanks though for your comments.
 
The risk is one bank standing still while the others float. It's the differential that you're speculating on -- hence, it's [sic] measurable given your biases.
 
Quote from skellington:

Yeah, it's all speculation but isn't that what we do here? :)

But as you can tell I don't know enough about currency trading to just throw all my cash in.

Timbo, do rate differentials flip quickly or do they tend to change slowly (over months or years)?
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Since most speculators lose their money, that is not an encouraging viewpoint. THe problem is, the USD already moved down a lot against other currencies. Throwing all yourmoney into AUD is basically the same as buying at a top. THe chanced of the USD rebouncing strongly are likely much higher than the opposite. So you are probably putting yourself in for a significant loss of your money.
 
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