The last round, RBA held rates instead of cutting rates as much expected by the marketplace.
So to me, the labour data this week is going to be a BIG deal. As it would give us a strong indication of whether RBA will cut the next round or not.
Truthfully, there is no way to guesstimate what the data would be like this morning. Since the previous month’s employment data was about 15K new jobs, the expectation was flat for this month.
Nonetheless, since this is a highly anticipated event, I decided to place a spread trade 5 mins before the event when spot was trading at about 0.7714: –
Long, Stop if Bid at 0.7744
Short, Stop if Offered at 0.7684
When the announcement came out……………Wow! Previous month’s data revised significantly upwards from 15K to 42K and this month’s forecast of 14.9K was blown out with a 37.7K.
AUDUSD shot up through the roof, hitting a high of 0.7780. I squared the trade at 0.7770 for a trading profit of 26bps. Ok lah……….good for a nice lunch!
The Panthenon Investment Group 