AUDJPY neutral

RBA raises interest rates, it’s time for news trading!

30 September 2022 114
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The Reserve Bank of Australia will make its decision on the interest rate at 6:30 Moscow time on Tuesday.

The event showed significant average returns in both news trading and rollback trading.

 

It's time for enthusiasts who tend to fast trading on the news to earn extra money on the RBA's solution.

 


What is a possible trading strategy?

 

It may be any pair with AUD, for example, AUDJPY.

The pair was chosen due to the Bank of Japan's commitment to the loose monetary policy and the following yen decline. On the contrary, the monetary policy of the Bank of Australia is tight. Thus, in case Australia's interest rate is raised, the AUDJPY pair is likely to increase as well.


 

The strategy is presented below (timeframe M15):

 

1. If Australia's interest rate is rising, purchase AUDJPY at the time the data is published.

If Australia's interest rate is decreasing, sell AUDJPY at the time the data is published.

 

Close the deal 2 hours after entering the market.

 

Stop Loss is below the previous day's low for purchases and above the previous day's high for sales.

 


2. A few seconds before updating the data on the AUDJPY chart, set 2 deferred Buy Limit and Sell Limit orders with a difference of 0.2-0.3% with the current price (approximately 200-300 pp) with a target Take Profit around the price at the time of updating the data.

 

Next options:

 

* * in case Australia's interest rate rises, stick with the Buy Limit and remove the Sell Limit. It’s advisable to provide defense with a Stop Loss, which is below the previous day's low.

 

* * in case Australia's interest rate decreases, stick with the Sell Limit and remove the Buy Limit. It’s advisable to provide defense with a Stop Loss, which is above the previous day's high.

 

If the deferred order for opening the position doesn’t work within 8 hours, it’s advisable to remove it.

 

If Take Profit doesn’t work within 8 hours after the opening of the deal, it’s advisable to exit the market on our own.

 



Remember the spread and money management rules!

 


Warning!

Trading on financial markets involves a high level of risk and may lead to the loss of investment capital. The MarketCheese team is not responsible for the possible loss of your investment funds.

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