| 9:30pm(NY Time) | AU CPI q/q | Forecast 0.5% | Previous 0.1% | |||
| ACTION: | BUY 0.8% | SELL 0.2% | AUD/USD | |||
If we get a better than expected CPI data, we should see an instant appreciation of AUD by at least of 35 pips within the hour, but if we get a worse than expected number, AUD should drop about 35 pips or so. I am looking for a deviation of at least 0.3% on the quarterly GDP, or I will skip the trade.
CPI Definition
The Consumer Price Index (CPI) measures the rate of inflation (i.e., the rate of price changes) experienced by consumers when purchasing goods and services. A rising trend has a positive effect on the nation’s currency. The primary objective of the central bank is to achieve price stability; when inflation rises above an annualized rate of approximately 2%, they will respond by raising interest rates to bring prices down. Higher interest rates attract foreign investment, thus increasing demand for the nation’s currency. CPI is one of the most closely watched indicators and will usually have a high impact upon release.
UPDATED: Actual Release came out as expected. It was a no trade. Market reaction after the news is almost negligible.
Related posts:
- New Zealand CPI q/q 10/14/09
- Australia Employment Changes 11/11/09
- Australia Monetary Policy Meeting Minutes 10/19/09
- Australia Employment Changes 12/09/09
- Australia Employment Changes m/m 10/07/09
- Australia Employment Changes m/m 09/09/09
- Australia Retail Sales m/m 09/08/09
- BOC Interest Rate Decision 07/21/09
- Australia GDP q/q 09/01/09
- Australia GDP q/q 12/15/09
hi henry i only managed 20 pts i had many more oportunities to make more pips,,i realised even more so that your mindset is most important to allow you to keep trading successfully..all your posts are good and i learn something every time i watch them..thanks.. marc m australia..