Monday, March 1, 2010

RBA Decision Imminent

Considering the data of late, I think it's prudent to enter a long AUD position. As a trader, I think the market position is unfavorable (either rally to .9070 on a hike or break to .8800 on a pause...quoted .8890....risk 90pips to make 80) but considering recent data, I am willing to take a shot. The important part of the article isn't in the headline, though cumulatively it is enticing. The meat of my decision comes towards the bottom under Government spending gains. I know it's normally the boring crap at the bottom of the ticker no one reads but we should recall Mr. Stevens making comments about the balancing act central banks will play between monetary and fiscal stimulus. Total general government final consumption expenditure grew 1.8% in Q4 vs growth of 1.4% in Q3 and .89% in Q2. Expect Stevens and others to turn the faucet down a bit in an hours time.

No comments:

Post a Comment