RBA (Reserve Bank of Australia) Governor Glenn Stevens is scheduled to testify in front of the House of Representatives Standing Committee on Economics in Sydney on the RBA Annual Report. Most likely we’ll see a repeat of recent rhetoric and some Q&A session taking place. But since Stevens is the head of RBA, anything he says have the potential to move the market. It is important for Forex Traders to pay attention to these speeches, testimonies as we can often get a hint of future monetary policy direction, which is the REAL driver of currency market.
Stevens has been very hawkish up until last week, where he started to tone down a little bit on his optimism over Australia’s economy and its recovery. If Stevens maintain his usual rhetoric and is extremely hawkish in his testimony, then we could see AUD appreciate; if the opposite is true, then AUD may trade lower against other major currencies.
If you have never traded a Central Bank speech before, then it is better to stay out and just watch the market, it is sometimes better to be safe than sorry, especially at a low liquidity time as this.
NOTE: I probably won’t be recording this trade as I have some personal errands to run. But it could be a good education for new traders to watch market movement at this time, you never know if the market will react enough to give you some profits.
Related posts:
- Trade Plan For RBA Interest Rate Decision 09/07/10
- Forex Trade Plan And Video For RBA Cash Rate Decision 08/03/10
- Forex Strategy For AU RBA Interest Rate Decision 08/01/11
- Forex News Trading AU RBA Interest Rate 06/07/11
- Forex News Trading AU RBA Interest Rate 05/03/11
- Forex News Analysis AU RBA Interest Rate 07/05/11
- Forex News Trading AU RBA Interest Rate 09/06/11
- RBA Cash Rate Decision 10/05/09
- Forex news trading for AU RBA Interest Rate 02/28/11
- Forex News Trading AU RBA Interest Rate 04/05/11
{ 2 comments… read them below or add one }
Hmm… as far as economic calendar days are concerned, it is still Thursday the 13th in the U.S.; however, I can see how you would get confused if you are in Australia.
Henry,
You are very good and helpful. Please check if you did not mistake news for 13/08/2009 for 14/08/2009.
i.e posting 14th news instead of 13th news.
Thanks and remain blessed.