Our plan to trade today’s CPI release out of Australia will be to look for opportunities for entry if we get a surprise in this release, here is the current forecast:
9:30pm AU CPI q/q Forecast 1.0% Previous 0.9%
ACTION: AUD/USD BUY 1.2% SELL 0.7%
Interest Rates
Our plan to trade today’s CPI release out of Australia will be twofold. First, we’ll look for a possible pre-buying of AUD ahead of this release during early Asian trading session for a possible sentiment trade; and Second, we will look for opportunities to enter the market if we get a surprise in this release, here is the current forecast:
9:30pm AU CPI q/q Forecast 0.9% Previous 0.5%
ACTION: AUD/USD BUY 1.2% SELL 0.6%
7:30pm AU CPI q/q Forecast 0.4% Previous 1.0%
ACTION: AUD/USD BUY 0.7% SELL 0.0%
We’ll be lookign to trade the quarterly CPI release out of Australia. As reflected in recent RBA rate statements, Australia is facing rise in inflation, and this number could surprise to the upside. RBA hiked rates last few rate decisions, and with a surprise better than expected release, we could have justification for further rate hike.
8:30pm AU CPI q/q Forecast 0.9% Previous 0.8%
ACTION: AUD/USD BUY 1.2% SELL 0.6%
Our focus will be on the quarterly CPI release out of Australia. As stated in recent RBA announcements, Australia is facing possible rise in inflation, and this number could surprise to the upside. RBA hiked rates a few weeks ago and surprised the market, this will be the justification for that rate hike. Therefore, If we get a better than expected CPI data, we should see an instant appreciation of AUD by at least of 40 pips within the hour, but if we get a worse than expected number, AUD should drop as traders will be confused over RBA’s decision, and we should expect market to consolidate. Of course, the deviation that I am looking for must be at least 0.3%, or I will skip the trade.
