rpmfxtrader
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Australian Interest Rate Decision 12:30am est
Contains the outcome of the decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it projects the economic outlook and offers clues on the outcome of future rate decisions.
Forecast: 4.5% +.25 hike
A deviation of .5 should move the market 50 to 100 pips
A deviation of .25 should move the market 35 to 50 pips
A 50% retracement is common in the following 3 hours. If no conflicts this entry should be good for 100% of the initial reaction.
Retail positioning is undecided as the number of buyers and sellers is nearly even.
The Reserve Bank of Australia has a monetary policy announcement this evening and it is widely expected that they will raise interest rates for the sixth time since October 2009. Judging from the price action in the Australian dollar, not everyone is convinced that the RBA will deliver. The worry is that even if they raise interest rates to 4.50 percent, they could suggest that they are nearing the end of rate hikes. Whether Australian rates will reach 5 percent before all is said and done remains a question and tonight Aussie traders will be looking for answers. In many ways, what the RBA telegraphs about future rate hikes is even more important than tonight's rate hike, unless of course they do not raise rates.
Read more: http://community.nasdaq.com/news/20...ate-decision.aspx?storyid=20339#ixzz0muktbKTV
Contains the outcome of the decision on interest rates and commentary about the economic conditions that influenced their decision. Most importantly, it projects the economic outlook and offers clues on the outcome of future rate decisions.
Forecast: 4.5% +.25 hike
A deviation of .5 should move the market 50 to 100 pips
A deviation of .25 should move the market 35 to 50 pips
A 50% retracement is common in the following 3 hours. If no conflicts this entry should be good for 100% of the initial reaction.
Retail positioning is undecided as the number of buyers and sellers is nearly even.
The Reserve Bank of Australia has a monetary policy announcement this evening and it is widely expected that they will raise interest rates for the sixth time since October 2009. Judging from the price action in the Australian dollar, not everyone is convinced that the RBA will deliver. The worry is that even if they raise interest rates to 4.50 percent, they could suggest that they are nearing the end of rate hikes. Whether Australian rates will reach 5 percent before all is said and done remains a question and tonight Aussie traders will be looking for answers. In many ways, what the RBA telegraphs about future rate hikes is even more important than tonight's rate hike, unless of course they do not raise rates.
Read more: http://community.nasdaq.com/news/20...ate-decision.aspx?storyid=20339#ixzz0muktbKTV
