Trading the RBA Interest Rate Decision

AUD/USD - Trading the RBA Interest Rate Decision

Hello Traders,

Thank you very much for your feedback on my recent articles. I would also like to congratulate all traders who took advantage of the Non-Farm Payroll event this month.

Let’s understand why 7777 is such an important number when trading the Aussie (AUD/USD) on the RBA Interest Rate Decision event.

The 7777 Aussie Trade is on its way!

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

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

The RBA Interest Rate Decision

We have the Australian Rate Decision from the Reserve Bank of Australia and the interest rate statement along with the monetary policy statement coming up. On Thursday the 9th of February, the Australian Governor Lowe will be 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 level. 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 detailed analysis.

AUD/USD - Trading the RBA Interest Rate Decision

We can see that Aussie is in Bearish Wedge and is now approaching the top of the distribution channel at 0.7777. This figure is also the top of the channel. This level is a major supply level for several Financial Institutions.

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

TIPIF 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.

Trading the Euro with precision – £850 and still going! 

Trading the Euro with precision - £850 and still going!

Euro is still going through complex corrective recovery. We are Bullish on the US Dollar and therefore Bearish on this currency pair. We favoured a short position at 1.0825 due to the technical level of the 50% Fibonacci and supply area. It reacted exactly as expected and has retraced in excess of 100 pips with the trade still being in play to make more.

Two trade producing over £1500 in a week!

2 Trades producing over £1500 in a week

Two trades that were provided to Platinum members at the start of the week with the NZD triggering on Tuesday and the Euro triggering on Thursday. Members took these trades and are reaping the rewards from doing so. It is relatively easy to incorporate these strategies into your own trading plan.

Subscribe to receive the 2017 Platinum Premium Financial Reports and get cutting-edge insights delivered to your Inbox:

  • Trading the 1st 100 days of Trump.
  • Trading the European Elections.
  • Trading the Gold Run.
  • Trading the Canadian Recession and a 3000 pip move.
  • 1000+ pips move on the USD/JPY.
  • 500 pip move on the Euro Parity Hit.

Have a beautiful day and an even wonderful week!
Nisha Patel

Nisha Patel

Live from the Platinum Trading Floor.

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The information you’ll find in this article is for educational purpose only. We make no promise or guarantee of income or earnings. You have to do some work, use your best judgement and perform due diligence before using the information in this article. Your success is still up to you. Nothing in this article is intended to be professional, legal, financial and/or accounting advice. Always seek competent advice from professionals in these matters. If you break the city or other local laws, we will not be held liable for any damages you incur.