I have had my eye on the Australian dollar (AUD) against the US dollar (USD) also known as AUD/USD (read: Aussie – Dollar) since the beginning of August, looking for a long term trade.
Previously on AUD/USD: Read
Forex Diva is proud to announce that her forecast was correct and she is now enjoying the dough she made by trading AUD/USD based on her diamond analysis.
Yesterday we had an event that usually impacts the AUD trading. I’m talking about the construction work done in the land of Australia. Too bad, the work completed this quarter was 0.2% lower than last quarter. We would normally expect a bit more of a drop in the Australian dollar after this news, but it was little changed versus the U.S. dollar. It touched the 61.8% Fibonacci retracement and went back up to the 50% level today. And that is how I made some money. Let’s take a look (click to enlarge):
Now, I know, I could have waited for more potential gains in the pair and made more profit. But Forex Diva doesn’t like to take risks. Better safe than sorry, right?
I will continue to keep an eye on the Aussie and will update you as soon as I catch a catch. For now, here are upcoming events that can move the Australian dollar:
– Building Approvals from Australian Bureau of Statistics -Aug 29
This report measures the changes in the number of new building approvals and is released every month. The higher the number, the higher the Australian dollar will rise, especially if it is higher than the forecast. Last month’s number was -2.5%. Traders are speculating that today’s number will stand at -4.7%. The number has been larger than the forecast for 2 consecutive months.
– Private Capital Expenditure -Aug 29
This one measures the change in the total inflation through the value of new capital expenditures made by private businesses. Again, a higher than expected number is good for AUD. Right now the forecast stands at 3.1%.
– Cash Rate Decision by Reserve Bank of Australia (RBA)- Sep 4
As we have mentioned before, interest rate is one of the biggest deals in the currency market, and every month right around the first Tuesday of the month the AUD trading crowd go somewhat crazy. They have been a bit more relaxed recently though because the RBA has kept the interest rates right at 3.50% since June. We are expecting the same interest rate for next month.