NEWS TRADING
Tuesday October 27, 2009
WEDNESDAY [8:30am]
0.9% Forecast
AU CPI q/q BUY 1.2% SELL 0.6% AUD/USD
Our focus will be on the quarterly CPI release out of Australia. As
stated in recent RBA announcements, Australia is facing possible
rise in inflation, and this number could surprise to the upside.
RBA hiked rates a few weeks ago and surprised the market, this will
be the justification for that rate hike. Therefore, 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 be confused
over RBA's decision, and 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.
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