An Aussie Trade To Watch This Thursday

Every month, around 40 days after the month ends, Australia releases the change in the number of new loans approved for purchasing houses. The Australian Bureau of Statistics will release the percentage number at 7:30 PM ET, Thursday, February 11, 2016 and you can enter your trade as early as 7:00 PM ET for 9:00 PM ET expirations.

This is news important to traders looking for signs of strength or weakness in the housing market, which can affect the economy overall. When traders clue into news, then that usually means there can be implied volatility in the market and a good time for a trade using a neutral strategy.

After 12 - 24 months reports and analysis of market reaction, it was found that an Iron Condor with a $30 profit potential or more, is a high probability trade strategy for this event. It was found that the AUD/USD market tends to react after the news, but then pulls back and settles.

An Iron Condor strategy takes advantage of this kind of movement by buying a lower spread below where the market is trading, and selling an upper spread above where the market is trading.

When one buys the lower Nadex AUD/USD spread below the market, the ceiling of the spread should be where the market is trading at the time and should meet the floor of the Nadex AUD/USD spread sold above the market.