new here. already like this place after browsing for a few minutes
a quick question to ask but not 100% if this is the right sub-forum to post. was about to post it in "forex" but realized my question has nothing to do with forex trading so decided to just post it here. If moderators think it's the wrong place to ask, pls feel free to move it.
ok here's the question and any constructive opinions would be appreciated. I've got some US$ cash(6 figures) at hand and am not sure what would be the best option for me, reason being the trend for the next a few years is US$ will go up and AU$ down. I've thought about my options but not sure which one would suit me best (and honestly, not sure if there're other options I've failed to take into consideration):
1) hold US$ as is and do nothing
Pro: it appreciates value against AU$
Con: no interest earnings and I can't use it in AU
2) convert it to AU$ and put it in my mortgage offset account
Pro: it saves me money in interest payment
Con: I'll miss out on the US$/AUD up trend
3) use the US$ as collateral and borrow some AU$
Pro: I can save money in interest payment and won't miss out on the US$/AUD up trend
Con: not sure where to go and who to see
I'm only assuming here that option 3 exists. I've heard that this practice is commonly used by companies involved in international trading to hedge risks caused by currency fluctuation.
Any help would be much appreciated!