Forex News Trading AU Retail Sales 10/04/11

We´ll be getting the Retail Sales figure from Australia today once again, and if you´ve been following news out of Australia, you´d know that Retail Sales has been a sticky point for Aussie economy and a strong improvement may change the short term trend for the currency. Here´s the forecast:

8:30pm NY Time AU Retail Sales Forecast 0.3% Previous 0.3%
ACTION: AUD/USD BUY 0.7% SELL -0.1%

The Trade Plan
The deviation that we are looking for the Australian Retail Sales m/m release is for a minimum of 0.4%. If we get a 0.7% (or better) we´ll look to buy and if we get -0.1% (or worse), we´d look to SELL. There is a high probability of market movement of over 50 pips in the next 2 hours if we get our deviation.

We´ll be looking for an after-news retracement trade and we´ll do the 3 W´s. Wait for the deviation, Wait for the market to move with momentum first, and Wait for a decent retracement. For more information on my trading methods, please read:
https://www.currencynewstrading.com/how-to-get-started-with-news-trading/

The Market
Australian Retail Sales is expected to expand by 0.3% today, however recent data from Australia has shown that its economy has been stalling at best, if not outright contracting… with recent rise in unemployment rate, we could see slightly worse to inline with expectation release today.

Additional Thoughts
AUDUSD is a very slow moving currency pair. If the release hits our deviation, we may have to jump in sooner than later… We could see very little retracement, if any, if we get a huge surprise in the market. It is also important to consider the low liquidity market condition as well.

Pre-news Consideration
There is no pre-news sentiment for this release.

DEFINITION
“Measures the value of sales at the retail level. A rising trend has a positive effect on the nation´s currency because Retail Sales make up a large portion of consumer spending, which is a major driver of the economy and has a sizable impact on GDP. Traders payclose attention to Retail Sales because it is usually the first significant indicator of the month that relates to consumer behavior and is susceptible to surprises.”

Thanks,