$1,250 Profit on AUDJPY Last Week

988

ANALYSIS PRIOR TO THE AUSTRALIA CPI

On 23rd October (Monday), we held our free weekly Alpha Play Weekly Traders Meetup, during which we shared our analysis and insights on upcoming news events to watch out for the week ahead.

One of the key events that we focus on last week was the Australia Consumer Price Index (CPI). This economic data measures the change in the price of goods and services purchased by consumers. Although this economic data is released on a quarterly basis, and is relatively late to the inflation data from other countries, it’s the primary gauge of consumer prices in Australia.

In most countries, consumer prices account for a majority of the overall inflation; and inflation is important to the Aussie Dollar (AUD) valuation. This is because rising prices generally lead to the central banks – the Reserve Bank of Australia (RBA) to raise interest rates out of respect for their inflation containment mandate. This in turn has a positive impact on the Aussie Dollar. This opposite stands true for a drop in inflation.

If the CPI data released is significantly better than the expected numbers, it will indicate an improvement in the economy, which usually cause the strengthening of the Aussie Dollar. On the other hand, if the data released is significantly worse than the expected numbers, it will indicate that the economy is slowing down, which usually translate to the Aussie Dollar weakening.

Based on our analysis on the Australia Dollar against the Japanese Yen (AUD/JPY), we were expecting more downside potential trading out of the CPI risk event.

*To protect our traders’ interest, not all pairs and details will be discussed in this post.

AUD/JPY PRICE MOVEMENT POST CPI

On 25th October (Wednesday), the actual CPI data was released at 0.6% versus the estimated forecast of 0.8%; with the Trimmed Mean CPI coming in at 0.4% versus the estimated 0.5%.

What this means is that there was a slower growth in the price of goods and services purchased by consumers than expected. This usually causes the price of the Aussie Dollar to weaken.

Following this major risk event on AUD CPI, we managed to profit +125 pips on the AUD/JPY trade, or $1,250 profit if traded a standard lot.

AUDJPY Before

AUDJPY After

What made us really excited is that our students and attendees were able to profit from this trade too!

As coaches nothing make us happier than our students’ success

THIS WEEK'S FOCUS

We are expecting a very active week ahead with several major risk events happening during the week –

  1. Bank of Japan (BOJ) Outlook Report on Tuesday
  2. New Zealand Employment Change on Wednessday
  3. Bank of England (BOE) Monetary Policy on Thursday
  4. US Non-farm Payroll on Friday

One of the potential currency pair and setup that we are keeping a close watch this week will be the Great Britain Pound against Japanese Yen (GBP/JPY).

ATTEND OUR NEXT WEEKLY FOREX MEETUP

6 NOVEMBER 2017

A free weekly meet-up where Alpha Play coaches share our outlook on the current market trends for currencies and how current affairs will affect the financial markets over the short and medium terms. This information is useful to Forex traders and even non traders curious about currencies trading.

*** Limited seats available so be sure to book yours fast! ***

SHARE
Previous articleWe Profited Together on USDJPY Last Week
Next articleMore Than $3,000 Profit Week With Our Community
A self-taught trader, Kar Yong was once featured in Channel News Asia’s Money Mind Young Investor. He was also featured as a Social Guru on the eToro social trading platform where he led the path for more than a thousand traders in confusing market conditions by sharing his trading strategies through forums and blog posts. Today, he teaches his proprietary 4 Pillar Forex Trading Strategy to students from all over the world.

LEAVE A REPLY