Thank you very much to all the new followers and for such lovely comments on my Yen Intervention Article. This month has started and we are in the season of Range which means the liquidity starts to dry up.
As traders, we should know how to adjust according to different months.
Today, what I wanted to talk about is the Australian Dollar. Now if you are new to FOREX trading, do not worry please just send me a message and I can show you how easy it is to trade currencies in a free 30 minute consultation.
As most of you know, I always study the fundamentals first for any currency and then move on the technical’s because I believe this gives me a true edge to trading currencies.
Let’s talk about and understand what is going on with the Australian Economy
The Reserve Bank of Australia kept rates unchanged on Tuesday. In a statement, they signaled that they are in no rush to cut interest rates again. RBA governor Glenn Stevens said in the statement accompanying Tuesday’s decision that “holding the stance of policy unchanged at this meeting would be consistent with sustainable growth in the economy and inflation returning to target over time“.
Let me put things into perspective. The economy grew at an accelerated pace in Q1 which was not what the RBA expected hence the reason for their surprise rate cut during the May 3rd monetary policy decision.
The housing market is still healthy. The continuing decline in housing loans to investors may mean that the threat of a housing bubble continues to subside.
Business loans accelerated further which would hopefully translate to more business investment that would make the transition away from the mining sector faster and easier. Trade is starting Q2 on a good footing, since the current trade deficit is the narrowest since February 2015 now all the above said let’s look at the negative points.
- Employment numbers in the month of April are not impressive
- Retail sales also did not reflect an improvisation but showed a slightly negative number which is an impact I would expect given the employment number were not that good
- Astonishingly bad numbers for Business Sentiment and confidence in April
- TD Securities Inflation for May was reduced to -0.2%
IMPORTANT NEWS EVENTS TO KEEP AN EYE OUT FOR ON THE AUSSIE GOING FORWARD:
- Consumer Inflation Expectation on Tuesday June 14
- Jobs report on Thursday June 16
- Housing Price Index on Tuesday June 21
- New Home Sales on Wednesday June 29
Platinum Best Trading Strategy for the Aussie in the Short Term
Platinum Triggers that will commence bearish trades or Short Selling
This means betting that the currency will go down.
- Hawkish Fed and amazing US economic data
- Worse than expected Australian economic data
Platinum Triggers that Will commence bullish trades or Buying
This means betting that the currency will go up
- Better Australian jobs data
- No June rate hike from Fed
- Worse than expected US economic data in June
When someone first hears the words technical analysis they tend to over think and start believing that trading is too difficult and time consuming. Believe me every single chart that you can see that I have published is very basic just outlining how the trade is produced with the help of Best Trading Strategy.
We have a belief here at Platinum that –
Perfect Trade = Perfect Fundamental + Perfect Technical Analysis + Perfect Logic + Perfect Risk Management.
Before I move ahead ALWAYS USE STOP LOSSES IN TRADING AND ALSO WE ARE NOT GIVING YOU TRADING ADVICE.
IMPORTANT LEVELS TO KEEP AN EYE ON FOR BUYS AND SELLS
All trades should have a stop loss not more than 40 Pips as stated on the chart. Place alerts at these level and watch the profitability in front of your eyes and we can have over a 200 Pips move in one day, so please learn buy and hold.
So how can you trade the above fundamental events with Best Trading Strategy? Please book for a one 2 one consultation to learn more.
Have a beautiful day
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