On 14 May 2013, when the world was waiting for Australia to announce their annual budget, we felt that they would probably announce a higher deficit than what market expects, although, there was alot of buzz during Asian trading time that the number was going to be big.
They market expected a deficit of A$14Bn and the final number was A$18Bn deficit.
AUD plunged.
We did a quick short of the AUDUSD at 0.9968 and squared at 0.9935 for a trading profit of 33 bps or 0.33%. Fortunately, we did as the AUDUSD rebounded back to 0.9990, after that it was all the way down.
Instead of staying glued to the screen, I decided to buy a put option at 0.9950 with a premium of 45bps, bring the BE to 0.9905, expiring on Friday, 17 May 2013.
The Panthenon Investment Group 