The AUD GDP q/q is a quarterly release, thus it is more likely to surprise and therefore more tradable. The GDP today could provide momentum to the AUD, considering that the RBA is tolerating inflationary risk at this time, but if the economy shows signs of heating up, then expect to see demand and price action return to the AUD.
Here is the forecast:
9:30pm (NY Time) AUD GDP q/q Forecast 0.4% Previous 1.1%
DEVIATION: 0.3% (BUY AUD 0.7% / SELL AUD 0.1%)
The Trade Plan
We'll be looking for a deviation of 0.3% to trade this release. If we get 0.7% or better, then BUY AUD; however, if we get a 0.1% or worse, we'll probably see AUD start to move downward and we should SELL AUD.
I’d recommend to use the Recommended Pairs from above as they are based on my CSM, which should provide the best combination of currency pairs to trade based on better/worse news. Of course you can also trade the default pair: AUD/USD.
Outlook Score
Outlook score is derived from market sentiment, focus, and economic indicators for the currency. It represents the long-term trend of the currency and its market perception. In short, a strong Outlook Score means more long-term demand for the currency, and a weak Outlook Score is the opposite.
DEFINITION
“AUD GDP is the market value of all final goods and services produced within a country in a given period of time. It is also considered the sum of value added at every stage of production of all final goods and services produced within a country in a given period of time.” In short, if you were to reduce the entire economy into a simple number, it would be the GDP.”