Pricing Report Out Of Australia Makes For Trade Opportunity

The Australian Bureau of Statistics will release the pricing change for finished goods and services sold by producers in Australia at 9:30 PM ET, Thursday, July 30, 2015.

When producers charge more for goods and services, that is inflation. Those prices are most likely are passed on to consumers. If inflation occurs, it can cause interest rates to go up.

Trade Two Nadex AUD/USD Spreads Entering At The Same Time

This is the kind of report regarding the economy that may move the markets but tends not to move them much and often the market will pull back. Thus, it makes for a great Iron Condor trade strategy opportunity.

Iron Condor setups are high probability trades when a market remains where it is or moves and pulls back. To set up your trade, you enter two spreads at the same time using Nadex (North American Derivatives Exchange), AUD/USD Spreads.

You will want to enter at 8:00 PM ET for 10:00 PM ET expiration times. Buy a lower spread and sell an upper spread. The lower bought spread’s ceiling should meet the upper sold spread’s floor and be where the market is trading at that time.

For this trade, you want a profit potential of $30 or more. The profit potential should be split between the two spreads. Look for around $15 or more profit potential for the lower bought spread and $15 or more for the upper sold spread. If those parameters can’t be met, then don’t take the trade and sit this one out.

AUD/USD Market Can Stay Where It Is And You Profit

With the Iron Condor, while ideally if the market doesn’t move at all you will profit. If the market does move, it can move 60 pips in either direction, maintain and this trade will still be a 1:1 risk reward ratio. Remember however, this report tends not to move the market significantly. If the market moved 30 pips in either direction and didn’t pull back, you would be at break-even.

For example, say the market went up 30 pips. You would profit around $15 on the lower bought spread, then lose around $15 on the upper sold spread making a break even trade. However, if the market moved only 15 pips up then you would profit around $15.

You would profit on the lower bought spread and be break even on upper sold spread. The highest profit will be if the market either remains or comes back to the center directly between your two spreads.

The trade recommendation is based on market analysis after 12 - 24 reports.

Apex Investing maintains a calendar for tradable news events and recommended strategies to trade them.

For more information go to www.apexinvesting.com.

Nadex is a US based exchange, regulated by the CFTC and can be traded from 49 different countries.

To learn more on the Iron Condor strategy using Nadex Spreads, see The Awesomeness Of An Iron Condor.