SEPT TRADE #6 - BUY AUD/USD

Sept 30, 2009 1:25pm (Manila)

As I write this, both trades are out. Autralian Retail Sales came out at 0.9%, better than the 0.6% expectation.

Retail Sales correlate directly to consumer spending, which is the largest part of GDP. With higher consumer spending, demand for Australian products increases. This pushes inflation up and forces the RBA (hopefully, in the future) to raise interest rates as part of their inflation control mandate.

Summary:

1st Half: +60 pips
2nd Half: +72 pips

Total: +132 pips

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Sept 30, 2009 8:00am (Manila)

BUY AUD/USD @ 0.8744
STOP - 0.8665
Limit 1 - 0.8774
Limit 2 - 0.8780

In about an hour and a half, Australian Retail Sales data come out which should be better than previous and bullish for the Aussie.