Aussie Pricing And Borrowing Offers Evening News For Trading

Evening news releases from Australia make for good evening trading. Australia’s Producer Price Index (PPI) and Private Sector Credit numbers will come out Thursday evening at 9:30 PM. The PPI is an indicator of consumer inflation and when borrowing is up among consumers and businesses, spending will rise as well.

This evening news activity offers a good Iron Condor strategy opportunity for trading Nadex AUD/USD spreads. The trade can be placed at 9:00 PM ET for 11:00 PM ET expiration. Two spreads are traded, potentially ready to profit if the market goes up or down. One spread is bought below the market and one spread is sold above the market. The ceiling of the bought spread should meet the floor of the sold spread and be where the market is trading at the time of entry.

For this news event, a profit potential of $30 or more is well prepared for an average 30-pip move. Stops should then be placed 60 pips up and down for a 1:1 risk/reward ratio.

To view a larger image click HERE.

In the chart above, for every 15 pips move up or down the market moves, it shows what the approximate profit and loss effect is to the upper and lower spreads. The result total is a sum of both and all are determined from settlement time. When the market pulls back to center between the two spreads, max profit is achieved. For every pip away from center, it is $1 less in profit.

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