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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.

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