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2017 will be the year most OECD countries will be looking at inflation as a gauge of economic growth.

Today was Australia’s turn on CPI, forecast was 0.7%.

I decided to place a straddle trade with the following details: –

Stop if Offered at 0.7565 (SL at 0.7585), Spot at 0.7595, Stop if Bid at 0.76230 (SL at 0.7595)

As it turned out I was surprised at the lower CPI number of 0.5% and with trimmed figures at 0.4%.  I wasn’t suspecting this to happen as I believe inflation is running alittle wild in Australia.

Nonetheless, my Stop if Offered was triggered at 0.7565 and I squared the position at 0.7540 for a trading profit of 25bps.

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