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Forex Signal (Tuesday October 25, 2011 NY TIME 8:30pm EDT) – AU CPI q/q

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Oct 24, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

    Jul 29, 2011
    Likes Received:

    Please find my trade plan for AU CPI.

    AU CPI q/q
    Forecast 0.7%
    Previous 0.9%
    Pair to trade: AUD/USD

    Numbers we need: BUY AUD/USD 1.0% and SELL AUD/USD 0.4%

    Economical Impact: High
    Typical Result: Good for currency
    Occurrence: Released monthly, about 25 days after the month ends

    About our Triggers:
    AU CPI q/q is forecasted to arrive at 0.7%. We are looking for a deviation on this trade of 0.4% to enter a Long position on AUD/USD and -0.3% to go SHORT. Should this report be triggered, we can expect to see about 40pips on the initial spike, if there is no conflict.

    What is it? Why does the market care?
    Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate

    The Consumer Price Index, measures the change in the price of goods and services from the perspective of the consumer.
    It is a key way to measure changes in purchasing trends and inflation in Australia.

    A higher than expected reading should be taken as positive/bullish for the AUD
    A lower than expected reading should be taken as negative/bearish for the AUD.

    Method I use to trade this:
    Stavro D’Amore Trading Method
    I will look for a 30% retracement in the original spike before entering a trade; I will close all my position as soon as I hit the original high point of the first initial spike My TP level would be just before a resistance level or if the chart decides to form a support level, looking at a 15 minute chart time frame.

    Historical Chart and Data for AU CPI q/q

    All the best

    Stavro D’Amore
    #1 Stavro D'Amore, Oct 24, 2011
    Lasted edited by : Sep 8, 2016

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