for forex tradersAUSTRALIAAt 11:30 p.m. we will have Australian...

for forex traders

AUSTRALIA
At 11:30 p.m. we will have Australian Interest Rate. It is expected they will cut the rates by 0.50 (50 bp) from 7.00% to 6.50%. Just last month we had another cut of 0.25 from 7.25% to 7.00%. Will they cut the rates to 6.50% as the market is expecting? I don't know. I am not sure, however, if it would be smart to place any trade on the cut as the market is expecting it so probably 50 bp cut will not give any reliable move on AUD/USD. We would need to see a cut of 0.75 but I don't think we would see that. If we had 0.75% cut, this would be a sell signal on AUD/USD. I would not place a trade on 25 bp cut but I think if they don't cut the rates, it might be a good move to buy AUD/USD and expect 40 pips move (possibly more). The problem is we may also have a commentary and depending what it says, this may move the price greatly - or even reverse. For that reason I don't really want to recommend anything here.