AU RBA Interest Rate Decision today is once again expected to remain unchanged at the current level of 1.50%. It is highly unlikely that RBA will surprise the market today, especially considering current CPI and the fact it’s approaching the end of the year as central bankers are reluctant to make any policy changes unless has been scheduled and well broadcasted.
10:30 pm (NY Time) AU RBA Interest Rate Decision Forecast 1.50% Previous 1.50%
DEVIATION: 0.25% (SELL AUD 1.25% / BUY AUD 1.75%)
The Trade Plan
The market does not expect any changes but If RBA decides to cut interest rate by 25 basis points, we sell AUD… If RBA decides to raise rates to 1.75%, we’ll buy AUD.
Important Note: The only time I´d recommend a spike trade is when there is so much momentum pushing this currency that regardless of spread and slippage, you should end up in profit if you just hold onto the trade. For more information on my trading methods, read: http://www.currencynewstrading.com/how-to-get-started-with-news-trading/
I’d recommend using the Recommended Pairs from above as they are based on my CSM, which should provide the best combination of currency pairs to trade based on better/worse news… of course, you can also trade the default pair: AUDUSD.
Outlook score is derived from market sentiment, focus, and economic indicators for the currency. It represents the long-term trend of the currency and its market perception. In short, a strong Outlook Score means more long-term demand for the currency, and a weak Outlook Score is an opposite.
Australian RBA interest rate is often referred to as the “cash rate target”, also called the official cash rate (OCR) or cash rate. This is the Australian base rate. Banks pay this interest rate when they take out a loan with a maturity of 1 day from another bank. By buying or selling bonds and other securities issued by the government the RBA can influence the money supply and thus the cash rate target. A rise or fall in the cash rate often also leads to a change in the interest rates for mortgages, loans, and savings.
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Source: New feed 2