We’ll be getting the Retail Sales figure from Australia today once again, and if you’ve been following news out of Australia, you’d know that Retail Sales has been a sticky point for aussie economy that a strong improvement may change the short term trend for the currency. Here’s the forecast:
9:30pm NY Time AU Retail Sales Forecast 0.3% Previous 0.6%
ACTION: AUD/USD BUY 0.9% SELL -0.3%
The deviation that we are looking for the Australian Retail Sales m/m release is for a minimum of 0.6%. If we get a 0.9% (or better) or -0.3% (or worse), we’d look to get in either on a LONG or SHORT trade depending on the release, with a high probability of seeing the market move over 50 pips in the next 2 hours.
With what took place recently in the market and the general sense of risk aversion, I would expect the market to sell off AUD strongly on a weaker Retail data than to buy AUD on a stronger data… at any rate, if the release is going against the market trend, we may get a chance to position our trades for further drop in the AUD/USD pair.
DEFINITION
“Measures the value of sales at the retail level. A rising trend has a positive effect on the nation’s currency because Retail Sales make up a large portion of consumer spending, which is a major driver of the economy and has a sizable impact on GDP. Traders payclose attention to Retail Sales because it is usually the first significant indicator of the month that relates to consumer behavior and is susceptible to surprises.”
Related posts:
- Forex Strategy & Video For Australian Retail Sales 08/02/10
- Forex News Trading Australian Retail Sales 11/03/10
- Forex News Trading Plan For Australian Retail Sales 10/04/10
- Australian Retail Sales m/m 01/06/10
- Forex Strategy For AU Retail Sales 11/02/11
- Forex Strategy For AU Retail Sales 08/01/11
- Australia Retail Sales Trading Plan 05/31/10
- Australia Retail Sales Forex Trading Plan 12/01/10
- Forex News Trading AU Retail Sales 10/04/11
- Forex Trade Plan For AU Retail Sales 08/30/10
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