AUD/USD: A Market To Trade In U.S. Evening Hours With Scheduled News Events

If you’re looking for some consistency of market movement or times to trade and a given strategy to trade, look no further than scheduled news events.

You can trade them at different times as well, not just during the day when you may be at your day job. The AUD/USD is a great market to trade in the evening when the Australian and Asian markets are open from 6 PM ET when Australia opens to 3 AM ET when Asia closes.

Australia runs an hour ahead of Asia on the schedule. If you trade Nadex binaries or spreads your risk is defined and capped up front as well.

Monday evening August 31, at 9:30 PM ET, the Australian Bureau of Statistics will release Building Approvals, the percentage change of new building approvals issued.

Building and construction greatly affects job production due to the numerous services required for constructing a new building. The first step in the process is getting a building approval. In addition to that report, the Current Account is also released.

Similar to the Trade Balance, it is the difference in value between imported and exported goods. Goods and services must be purchased in the country’s currency therefore, when demand rises, so does the demand for a country’s currency.

Typically, this news event will move the AUD/USD market and then the market will pull back. However, for the strategy recommended, it’s not necessary for the market to move significantly or move at all or in a particular direction.

This strategy uses Nadex Spreads and is advantageous regardless of the direction the market goes. What is needed is for the market to simply remain in the area it started or move and then pull back.

Spreads Floors and Ceilings

Spreads have a lower floor number and higher ceiling number. For this strategy, you will enter two trades. You want to buy a Nadex AUD/USD spread with the ceiling where the market is trading at the time of entry and you want to sell a Nadex AUD/USD spread with the floor where the market is trading at the time of entry.

With this setup, if you plotted your spreads on an AUD/USD chart you would see they are stacked one on the other. Since the report comes out at 9:30 PM ET, your entry time will be 9:00 PM ET for an 11:00 PM ET expiration.

Max Profit Is Achieved In Center Between The Two Spreads

This strategy is called an Iron Condor and for this Iron Condor you want a profit potential of $30 or more. On your bought spread, your profit potential will be the distance between your entry price and the ceiling.

On your sold spread, your profit potential will be the distance between your entry price and the floor. Max profit is achieved when the market is right where the ceiling of your bought spread and the floor of your sold spread meet, i.e. in the middle between your spreads.

Therefore, as is typical for this event, if the market makes a move and pulls back to where it was at entry that is the best-case scenario for this strategy. Alternatively, if the market remains where it started, that is also a profitable scenario.

Nadex can be traded from 49 different countries. To demo more trades and strategies like this, sign up for a demo account with Nadex, and go to Apex Investing for free training and education on how to trade Nadex Spreads at www.apexinvesting.com.