The Australian GDP data this week will be particularly important, given the proximity of the earlier rate decision. Ideally, the combination of these two data events will align for trading opportunities and so I will be looking to trade the AUD/USD after the materials are released. The ASX can also be used as a vehicle for the event. Markets are expecting a small decline to 3% growth for the yearly figures. But what will truly set up trades here is how the information plays out in relation to the ultimate interest rate decision. Those looking to use this trade rec. should closely watch both events, as one will likely determine the outcome of the other. Australian GDP is set for release at 3:30 GMT on 3/6/2013.
Is there some correlation between US stock indexes and AUD/USD pair? It looks now there is not such a correlation.
Great question, Susan. One of my favorite subjects. There is a very high (positive) correlation between the AUD/USD and stock markets in general. This means that when stocks move higher, the Aussie tends to move higher as well, and vice versa.