Henry Liu
Former FPA Special Consultant
- Messages
- 473
Forex Signal (Tue May 31 2011, 9:30pm NY Time EST) - AUD GDP q/q
Australia GDP is a quarterly release similar to the U.S. Advanced GDP or the UK Pre-lim release, but usually there is only one release per quarter. Since this is a quarterly release, it is a high impact release that may change the short term trend of AUD. Here is the forecast:
9:30pm (NY Time) AU GDP q/q Forecast -1.0% Previous 0.7%
ACTION: AUD/USD BUY -0.7% SELL -1.3%
The Trade Plan
We’ll be looking for a devation of 0.3% or more. If we get -0.7% or better, then BUYAUD/USD; however, if we get a -1.3% or worse, we’ll probably see AUD/USD start to move downward.
For more information on my Spike trading method, please read:
Henry Liu's Trading Method
The Market
Recent natural disasters are the primary reason for the dramatic decrease of the first quarter GDP. The devastating effects in Japan also affected Australia’s economy which is one of Japan’s largest trading partners. Yet, Australia’s treasurer, Wayne Swan, remains optimistic that the recent challenges won’t affect the overall economic plan. He holds that “fundamentals are strong and prospects are bright.”
The Reserve Bank will hold it’s interest rate meeting on June 7th and it’s expected that they will focus on a medium-term outlook to move forward from these recent setbacks.
Additional Thoughts
AUDUSD is a slow moving currency and in the event that we get a strong release, we could see renewed risk appetite that would be the key focus of the session. Therefore, on a strong release, it may be best to jump in as soon as possible because we may not see much of retracement.
Pre-news Considerations
No Pre-News considerations.
DEFINITION:
“GDP is the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time.” In short, if you were to reduce the entire economy into a simple number, it would be the GDP.”
Historical Chart and Data for AUD GDP q/q
Thanks,
Australia GDP is a quarterly release similar to the U.S. Advanced GDP or the UK Pre-lim release, but usually there is only one release per quarter. Since this is a quarterly release, it is a high impact release that may change the short term trend of AUD. Here is the forecast:
9:30pm (NY Time) AU GDP q/q Forecast -1.0% Previous 0.7%
ACTION: AUD/USD BUY -0.7% SELL -1.3%
The Trade Plan
We’ll be looking for a devation of 0.3% or more. If we get -0.7% or better, then BUYAUD/USD; however, if we get a -1.3% or worse, we’ll probably see AUD/USD start to move downward.
For more information on my Spike trading method, please read:
Henry Liu's Trading Method
The Market
Recent natural disasters are the primary reason for the dramatic decrease of the first quarter GDP. The devastating effects in Japan also affected Australia’s economy which is one of Japan’s largest trading partners. Yet, Australia’s treasurer, Wayne Swan, remains optimistic that the recent challenges won’t affect the overall economic plan. He holds that “fundamentals are strong and prospects are bright.”
The Reserve Bank will hold it’s interest rate meeting on June 7th and it’s expected that they will focus on a medium-term outlook to move forward from these recent setbacks.
Additional Thoughts
AUDUSD is a slow moving currency and in the event that we get a strong release, we could see renewed risk appetite that would be the key focus of the session. Therefore, on a strong release, it may be best to jump in as soon as possible because we may not see much of retracement.
Pre-news Considerations
No Pre-News considerations.
DEFINITION:
“GDP is the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time.” In short, if you were to reduce the entire economy into a simple number, it would be the GDP.”
Historical Chart and Data for AUD GDP q/q
Thanks,
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