Forex Signal (Tue March 1 2011, 7:30pm NY Time EST) – AU GDP q/q… – Today, 05:15 AM

March 1, 2011 - PRLog -- Australia GDP is a quarterly release similar to the U.S. Advanced GDP or the UK Pre-lim release, but usually there is only one release per quarter. Since this is a quarterly release, it is a high impact release that may change the short term trend of AUD. Here is the forecast:

7:30pm (NY Time) AU GDP q/q Forecast 0.6% Previous 0.2%
ACTION: AUD/USD BUY 0.9% SELL 0.3%

The Trade Plan
We’ll be looking for a devation of 0.3% or more, therefore if we get 0.9% or better, we’ll be BUYING AUD/USD; however, if we get a 0.3% or worse, we’ll probably see AUD/USD start to move downward.

We’ll be trading this release using the after-news retracement method. For more information, please read:
Henry’s news trading method.

The Market
We’ll focus on GDP release which is expected at 0.6%. Ever since the sharp decline in last quarter’s GDP release, traders have been speculating that the growth in Australia economy will be moderate, combining that with recent flooding and cyclones, this GDP release may not surprise to the upside.

However, considering that Tuesday’s Retail Sales came out at 0.4%, or 0.1% better than expectation, Australian economy is still showing remarkable resilience.

Additional Thoughts
AUDUSD is a slow moving currency and in the event that we get a strong release, we could see renewed support for AUDUSD pair and possibly see market push the 1.0250 level… However, on a weak release, AUD could drop to parity (1.0000).

Please Visit  http://www.forexfixedodds.com/?p=105 ; Forex Trade Alerts for details