Australian Economic News Brings Evening Trading

Traders interested in trading in the evening hours can look to scheduled economic news events for opportunities. Wednesday, August 17, at 9:30 p.m. ET, the Australian Bureau of Statistics will release the Employment Change and Unemployment Rate for Australia. Both reports are leading economic indicators for consumer spending. Typically, AUD/USD will react to this news with a move and then a pullback making for an Iron Condor opportunity.

For setting up this strategy, two Nadex AUD/USD spreads are traded. One is bought below the market, with the ceiling where the market is trading at the time and the other is sold above the market, with the floor where the market is trading at the time. Recommended profit potential for this trade is around $35 combined, based on an average 35-pip move. Therefore, each spread should have a $17 or more profit potential.

Having bought below the market and sold above the market, max profit is achieved when the underlying makes a move, but then pulls back and is centered between the spreads again at settlement.

Since the news is released at 9:30 p.m.ET, entry can be as early as 9:00 p.m.ET, for the two-hour 11:00 p.m.ET expiration. Never force a trade. When the market settles anywhere between the breakeven points, 35 pips up or down, there is profit.

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