something untuk dikongsi, news pagi esok 8.30am berkaitan AUD....
TRADE ON NEWS
AU CPI BUY 0.7% SELL 0.0% AUD/USD
We'll be lookign to trade the quarterly CPI release out of
Australia. As reflected in recent RBA rate statements, Australia is
facing rise in inflation, and this number could surprise to the
upside. RBA hiked rates last few rate decisions, and with a
surprise better than expected release, we could have justification
for further rate hike.
Here is the plan, if we get a better than expected CPI data, we
should see an instant appreciation of AUD by at least of 40 pips
within the hour, but if we get a worse than expected number, AUD
should drop as traders will probably feel uncertain over whether or
not RBA will hike rate during the next meeting, there fore we should
expect market to consolidate. Of course, the deviation that I am
looking for must be at least 0.3%, or I will skip the trade.
CPI Definition
"The Consumer Price Index (CPI) measures the rate of inflation
(i.e., the rate of price changes) experienced by consumers when
purchasing goods and services. A rising trend has a positive effect
on the nation's currency. The primary objective of the central bank
is to achieve price stability; when inflation rises above an
annualized rate of approximately 2%, they will respond by raising
interest rates to bring prices down. Higher interest rates attract
foreign investment, thus increasing demand for the nation's
currency. CPI is one of the most closely watched indicators and will
usually have a high impact upon release."
So be cool till coming morning.....
TRADES WITH THE NEWS
