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Forex Signal (Tue, May 04, 00:30 EST) Australian Interest Rate

Discussion in 'Current Forex Trading Signals' started by Crazy Cat, May 3, 2010.

  1. Crazy Cat

    Crazy Cat Former FPA Special Consultant

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    Hi there :)

    This is Crazy Cat with a potentially profitable trading opportunity...

    Tuesday, May 04th (00:30 New York Time) AUSTRALIA

    We have Australian interest rate statement coming out. It is expected they raise the rates from 4.25 to 4.50%.

    I recommend trading AUD/USD for this report.

    Please read what this indicator means and how it affects the AUD/USD by going to this link: http://www.forexpeacearmy.com/forex.../7334-australian-interest-rate-statement.html

    The trigger for this indicator is 0.25. If it comes out at 4.25% or lower, AUD/USD will probably go down by 70 pips or more in the first 45 minutes of the report. If they raise the rates to 4.75% (highly unlikely), AUD/USD should go up by at least 70 pips.

    I might revise this signal as we get closer to the report. The key here is how many economists expects them to hike the rates and how many expects them to keep the rates at the same level. Those numbers very often change as we get closer to the report. For example, sometimes when there is 40/60% or 50/50% chance for a rate hike or no hike, either signal is tradable.

    Obviously, the bigger the difference between expected and actual numbers, the bigger will be the move.

    To read the after-spike retracement strategy for this report click here: http://www.forexpeacearmy.com/forex...atement-after-spike-retracement-strategy.html

    For example: on February 1st, Australian interest rate came out at 3.75, versus an expectation of 4.00. AUD/USD went down by around 130 pips. See for yourself what happened on this chart: Forex news trading currency exchange charts

    I highly recommend you study the entire history and charts of this report by following this link: Forex News Trading | Details and History for AUD Interest Rate Statement

    I hope you make some money on this report.
    -Crazy Cat
     
    #1 Crazy Cat, May 3, 2010
    Lasted edited by : Sep 8, 2016
  2. Mucro Pte Ltd

    Mucro Pte Ltd Recruit

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    AUD falling and MB trading spreads widening during this data release

    Any idea why AUD fell despite the rate increase?

    I also saw the spreads widen with MB trading during this data release. Is MB trading supposed to be ECN?
     
  3. GEORGECHENG

    GEORGECHENG Recruit

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    Australia’s currency fell after Stevens said borrowing costs have returned to “average” levels, ending the monetary stimulus that helped the nation avoid the global recession. Stevens has led Group of 20 policy makers in boosting borrowing costs by 150 basis points in seven months as record mining investment stokes demand for workers and fuels inflation. “Don’t expect this pace of monetary policy tightening to continue in the months ahead,” said Ben Dinte, an economist at Macquarie Group Ltd. in Sydney. Now that rates are moving toward average levels, policymakers have “some room to keep rates on hold in the next couple of months.”
     

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