Given that the pound is finally fighting back against the Aussie dollar I was thinking of entering into a GBPAUD forex hedge.
My situation is that my salary is fixed in GBP but paid in AUD at an average exchange rate for the month. That means that my salary fluctuates each month as the forex rate changes - but my home loan payments stay the same....
I can't enter into a standard option or forward contract as I'm not physically exchanging currency - as I get paid in AUD.
What I really need is some form of CFD or non-deliverable forex contract which allows me to agree a set AUD:GBP rate (say 0.44) on my payday for a nominal amount equal to my monthly salary in GBP - then if the actual rate on maturity is lower (say 0.42) then I pay an amount to the CFD provider and if the rate is higher (say 0.47) then I receive a payment from the CFD provider.
That's what I'm looking to acheive but I've no idea of how to do it. I'm not looking to trade in any way - this is purely a hedging rather than trading play.
Any advice on the best way to acheieve this hedge and who the best companies are to contract with?