At 3:30 am UK time and 11:30 EST the RBA (Royal Bank of Australia) hiked rates again. This was largely unexpected with 17 out of the 23 economists predicting the RBA to hold and only 6 expecting them to hike, but hike they did to 4.75% interest rate, and an instant 100 pip move occurred in the 1st minute after the release. Many traders in the ProfitMongers room earned a great amount of pips trading the spike using the Secret News Weapon trading forex futures and spot fx. There was also an afterspike opportunity which created about +15 pips, but after such a move, especially during the asian session, price action just consolidated.
A few hours later european traders started waking up to see the news, a nice trade setup occurred about 15 minutes before the London open. We took advantage of this trading opportunity in the live trade room, going long the AUDUSD at 0.9983 and taking profit above parity at around 1.0010. Did hold some in case of a further move but as other bad news hit the pound it caused the USD to appreciate versus the rest of the pairs, so the rest was out at breakeven.
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