Aussie News Triggers A Nighttime Trade For the AUD/USD Using Spreads

Tuesday, June 7, at 12:30 AM ET, the Reserve Bank of Australia is releasing the Cash Rate and Rate Statement. This news is consistently released on the first Tuesday of each month with the exception of January. Interest rates are the major factor in currency valuation. The Reserve Bank board uses the Rate Statement to communicate the reasons behind their decision-making, monetary policy, and their current and future economic outlook to investors.

This event tends to move the AUD/USD market. It can be traded using Nadex spreads and an Iron Condor strategy. For this trade, the minimum profit potential should be $30 or more combined between the spreads. Enter at 12:00 AM ET for 2:00 AM ET expirations.

Spreads have a ceiling and floor, which give the range of the market that can be traded in either direction, long or short. A spread provides limited risk; there is no loss or profit past the ceiling or floor. For this trade setup, there are two spreads and therefore, two ranges. The bottom spread range is bought with the ceiling where the market is trading at the time. The top spread range is sold with the floor where the market is trading at the time. For an Iron Condor, it’s ideal when the market does what it’s going to do and settles somewhere near or right where it started.

It is important to place stops should the market take off and go past the 1:1 ratio points either up or down. Stops should be placed 60 pips above and below from where the market started. The breakeven points for this trade strategy are where the market would hit 30 pips up or down. If it settles anywhere in between those points, then some profit is made, with max profit being if the market is between the two spreads at settlement.

How can a trader easily find the right spreads for this trade strategy? By using the spread scanner designed for trading Nadex spreads, at a glance, with all pertinent information on the spread in one window. See below for a glimpse of the layout of the spread scanner.

To view a larger image click HERE.

A trader only needs to look at the risk/reward columns and find spreads with just the right profit potential, or around $15, then verify the ceiling and floor parameters. Tickets to place the orders can be opened and all information verified before placing the orders.

Free day trading information and the spread scanner is available at Apex Investing.