Trading the AUD Interest Rate Decision

THE 7777 AUSSIE TRADE IS ON ITS WAY!

Although, BREXIT trades will continue for a few months, why let go of some wonderful fx trading opportunities that come across now.

It is made or break time and it all depends upon the magic number 7777 for the Aussie Dollar.

The RBA AUD Interest Rate Decision

We have the Australian Rate Decision from the Reserve Bank of Australia and the AUD Interest Rate Decision statement along with the monetary policy statement coming up. On Thursday the 9th of February, the Australian Governor Lowe will be holding a press conference.

Thereafter, Platinum Analysts predict a neutral stance going into this event but if there is any spike in the currency then be prepared to hit the 7777 levels. This is a major distribution level for several big banks. It should be traded with 45 pips stop loss and a target of 150 pips.

Platinum analysts are not expecting any changes in the policy, and are of the view that there will be no further rate increases for the next 6 months. We will be observing very closely for the 7777 number and if we see this prior to Thursday, we shall sell and hold.

Important events for the Aussie

1. MI Inflation Gauge – Monday, 00:00
   Previously in December, the index posted a robust gain in the last six months of 0.5%. This indicator is released on a monthly basis.
2. Retail Sales – Monday, 00:30
   Retail sales is a market mover and one of the most important indicators. We are expecting a figure of 0.3% on the retail sales any deviation by 0.2 either way, could make the market move quite dramatically.
3. AIG Construction Index – Tuesday, 22:30
   We have been talking about this housing bubble in the Australian Economy for quite some time. The construction index has had three straight readings below the 50 points level. It is clear that the construction sector is now starting to slow down. Platinum Analysts do not expect any major change in the figures and expect another reading below 50 this month.
4. Cash Rate – Monday, 3:30
   If you are new to trading, beware of this event. Although not predicted, if we do see a change in the rates, the currency can move quite aggressively. If we have a dovish statement from Lowe, then the Aussie could move lower aggressively. Do not try and revenge trade on this pair.
5. HIA New Home Sales – Thursday, 00:00
   This index provides a snapshot of the strength of the housing sector. The indicator rebounded in December, posting a strong gain of 6.1%.
6. NAB Quarterly Business Confidence – Thursday, 00:30
   This important indicator improved to 5 points in Q3, its highest level since 2014. Will the upward trend continue in the fourth quarter?
7. RBA Governor Philip Lowe Speech – Thursday, 9:00
   Lowe will speak at an event in Sydney. The markets will be looking for hints regarding the RBA’s future monetary policy.
8. RBA Monetary Policy Statement – Friday, 00:30
   This statement is released on a quarterly basis. It contains details of the RBA’s view of economic conditions and inflation and could provide clues about future interest rates moves.
9. Chinese Trade Balance – Friday, Tentative
   The indicator slipped to $275 billion in December, well short of the forecast of $345 billion. This marked the weakest surplus since March 2016. The markets are expecting a stronger surplus in the January report, with an estimate of $295 billion.

CHART AND TECHNICAL ANALYSIS

Please click on the below chart for a detailed analysis.

At Platinum, we always use stop losses in trading. All trades should have a stop loss, not more than 45 pips as stated on the chart. Place alerts at these levels and we can have over 200 pips move in one day.

Sell and hold! If you get this price…

Trade Levels to watch: AUD/USD

Using Platinum’s Forex Trading Strategies, our analysts suggest:

A) Short AUD/USD @ 0.7777 or nearest zone with 45 pips stop loss and target of 0.6860

B) Trade the trap zone with a 30 pip stop loss and an aim of 50 pips

TIP: IF THE AUSSIE DOLLAR MOVES A 100 PIPS IN THE NIGHT PRIOR TO THE LONDON OPEN ONLY TRY AND TAKE SHORT POSITIONS AFTER 11:00 GMT

If you have questions about this Aussie Trade, please do not hesitate to talk to one of our professional traders and we shall guide you step by step on trading the opportunity with finesse.

Bankers and Financial Institutions are always making huge amounts of money from trading the Forex. Markets move each day based on the Institutional Order Flow. Understanding how the Institutional Trading World works is the key to being a successful trader in the retail market rather than trying to second guess how the banks do it.

The Platinum Way embraces the Institutional methods of trading. We educate our members to think like Institutional Traders and not like Retail Traders.

No need for time-consuming analysis of complex charts and candlesticks. The need for multiple indicators, learning the art of technical analysis and spending hours over multiple time frames in order to decipher entry points into the market is long gone.

As usual, below are two most recent Trades of the Week videos that show how Platinum Trading Strategies have once again proved to produce consistent pip gains.