This November, I’m going to Australia for three weeks. Is there any advantage to exchanging U.S. currency for Australian currency before I leave, or in waiting until I arrive to do so? Or should I stick only with traveller’s checks and only carry cash when necessary?
IME the exchange rate you get from US banks is obscene, and often they have difficulty getting “obscure” currencies. Of course I have done most of my international travelling from the midwest, which probably considers New Mexico a foreign country. Check what your bank rates are versus the theoretical market (you can find at Yahoo!) If you live in a major metro area you might do okay. I haven’t been to Australia (darn) but most countries accept Visa/MC/Amex fairly broadly, then you get a decent spot rate for any purchases. Also usually do well using foreign ATMs, you should be able to check with your bank to make sure that their network is covered (broadly) in the places you expect to visit. And even if you don’t do extensive travellers cheques, you should at least one or two stashed away for an emergency.
I will defer to those with in-country experience for the best places in Oz to exchange money.
Phil, Phil, Phil, you’re a smart man, I respect you a lot. Don’t make me lower or even lose that respect by carrying traveller’s cheques. They’re outdated. Carry your ATM card and/or credit card, that’s the way to go. Traveller’s cheques are like dinosaurs, man. Don’t waste your time with them.
Anyway, convert about US$20-50 to AUSD before you go, just so you have some walking around money at the airport until you can find an ATM that will give you a good rate.
Neither. Just give your money to me. For…safe keeping. Yeaaahh. That’s the ticket. Safe keeping. Reeeeaaall safe. Now, don’t forget. Don’t take it with you. It won’t be …safe. It’ll be safe with me.* Reeeeaaall safe.* 
I agree with Montfort, and I do a lot of international travelling, only I’d start with more than $20 to $50 for pocket money.
The best rates of exchange are from ATMs, available almost everywhwere in the civilized world, and your bank-card will work in almost all of them. That’s not to say that I would rely on finding one if you’re heading to uninhabited parts of the Outback, of course, but in the major cities, no problem.
The next best rates are probably the banks in the country. The worst rates are U.S. banks or similar exchange kiosks, hotels, and non-bank affiliated exchange bureaus.
Having said that, generally speaking, we’re talking peanuts. If you’re changing $100, you’ll perhaps lose $1 on each exchange by using the hotel rather than ATM. What I’m saying is, it’s not worth a $5 cab ride to find a better exchange rate. It’s not worth hours of your vacation time fretting about it. It’s a coupla bucks, here and there.
If you were changing millions, of course, where 1% was sizable money, that’d be different.
C K, I hate to disagree with an admin, but, my experience is a bit different. About a week ago I went to Toronto for business. The hotel exchange rate was 1.38, the “real” exchange rate is about 1.55 (USD to CAD). If I change USD 100 at the hotel, then I get CAD 138 vs the 155 I should expect. Okaym, so CAD 13 is just a decent lunch somewhere, but over the course of a three week trip this could be significantly greater. The other advice you give makes sense, but I reiterate it’s important to know what the exchange rate should be (you can check the newspapers even) so you know whether you should accept the hotel rate, which sometimes cannot be avoided, or seek out a bank.
Go easy, Montfort–I haven’t done any international traveling since I was 10 years old!
Thanks for the tips, guys. Since most of my expenses (accommodations, most meals) are already covered and I only need to worry about a few meals and personal purchases, I’ll stick to the ATMs.
ATMs are definately the way to go. I just got back from Switzerland, France, and Germany and could use ATMs everywhere I needed. They even have change machines at the borders that take bills (including US $) and will change it to any other major European currency.
Once the Euro arrives all this fun will go away, but I will miss taking home change as momentos.
Sorry I sounded stern, Phil, but I needed to make my point. Unfortunately, I couldn’t use the same line on my parents, who gleefully brought a jillion dollars worth of traveller’s cheques with them on a trip to Europe last year. 
Don’t forget to check out the horse racing! Australia has some great horse racing. I don’t know if you’ll be there for the Melbourne Cup or not, but it’s a National Holiday over there.
The added attraction of going to horse racing is that you probably won’t have to change any money back to US $$. You won’t have any left
Somewhere I recollect hearing that in a lot of countries, the ATMs are only set to accept 4-digit PINs. Is this the case? And if so, what does pldennison have to do if he currently has a 6-digit PIN?
I’d hate to see him stranded there!
ATMS are everywhere here in Australia. Quite a few at the airport in Sydney (and Melbourne), and a very decent percentage of them are on the international Cirrus/Maestro network for both debit and credit cards. Check your card for a little mastercard-like logo to see if it’s compatible. AFAIK, Australian ATMs can handle six-digit PINs. My debit card has a four digit one, and my crdit card’s is six, and I’ve never had any trouble using either here or overseas. There are also several currency exchange desks at the airport, so you could quite possibly come here with no Aussie currency at all, but if you’d feel better about it, change US$100 in the States before you leave. This will be plenty for taxi fares, lunch, etc while you get your bearings. It’s pretty safe here in Sydney (though like in any major city, never be complacent). I usually carry a few big notes around, and I’ve never been mugged. I’ve never actually bought Aussie dollars, but I’m sure my overseas experience counts for my country as well. The worst rate is probably back home in the US, next worst would be your Aussie hotel. The airport rates here will be passable, and the best will be the downtown currency exchange places. That said, my preferred way to get cash when I’m overseas is via an ATM on the cirrus network.
Amex is accepted in quite a few places. Visa and Mastercard are accepted just about everywhere, and Diners Club is used a little. ATMs are common in most country towns as well. If you’re travelling to the outback, take some cash, but you’ll probably find there’s nowhere to spend it. 
In all the tourist areas (including bigger outback ones), you’ll be able to get cash. Banks are open 10am - 4pm.
If you want to meet up for a beer, all the better. There are Dopers in most of the cities.
Fair enough, Shib. You need to have a good idea of rates, so you can know whether it’s a total rip-off or not. The diff between 138 and 155 is pretty substantial. But I’ve been in situations where the bank rate is 155, the hotel rate is 150, and it ain’t worth the trouble.
Also remember that some place charge a commission separate from the exchange rate. That’s the real rip-off, where you’re paying a few bucks for nothing.
OTOH, most ATMs now charge a buck or two for the privilege of withdrawing your own money. Brrrrrrrr. It does mean that you should withdraw large amounts, since you’re hit with the same $1 fee whether you withdraw $200 or just $25.