Australian Employment And Unemployment Reports Leads To News Trade

The Employment Change Report measures the change in the number of people employed. The report issued in April was favorable with a forecast of 15.0 K and actual numbers coming in at 37.7 K. Job creation is an important indicator of consumer spending.

On Wednesday, May 6, 2015 at 9:30 p.m. ET, Australian Bureau of Statistics will release its monthly report. This month the forecast is 5.0 K. Should the report exceed the expected forecast, that would be perceived as positive for the AUD. The opposite would be true if the report was released with lower than expected numbers.

As shown on the charts below, you can see that the number of employed persons has followed an upward trend over the last year. The unemployment rate has fluctuated some, but has remained above six percent (seasonally adjusted) since June 2014.
Source: Australian Bureau of Statistics

What Strategy?
A suggested trading strategy for this news report is an Iron Condor using AUD/USD Nadex spreads. To use this type of strategy, you need to buy a lower spread and sell an upper spread having the floor of the upper equal to the ceiling of the lower. It is important to have these levels at the same place that the underlying is trading when you enter your trade.

When To Enter?
You can enter as early as 6:00 p.m. with an 11:00 p.m. expiration. With the report coming out at 9:30, that should give your trade plenty of time to play out. Quite often, when the news is released, the market will move and then pull back to where it was, giving you the greatest profit opportunity.

How Much Profit?
Look for a minimum of $35 profit potential. If the two spreads combined do not offer that much profit, then there is no trade.

For more education to help you with your trading, go to www.apexinvesting.com, a service of Darrell Martin.