May 052013

6A 03-13 (1 Min)  2_7_2013

2/7/2013 Quarterly RBA Monetary Policy Statement (1930 EST)
Forecast:  n/a
Actual: n/a
Started @ 1.0245
1st Peak @ 1.0231  – 1931 (1 min)
14 ticks

Reverse to 1.0245 – 1939 (9 min)
14 ticks

2nd Peak @ 1.0227 – 2020 (50 min)
18 ticks

Final Reversal to 1.0248 – 2102 (92 min)
21 ticks

Notes: Citing more positive economic development in recent months after a worse stint in earlier 2012, and further signs that the Chinese economy has stabilized, the RBA remains cautiously dovish, but has an optimistic outlook.  This caused a 14 tick short move that extended the LOD, and bottomed out above the S1 Pivot.  With JOBB, your order would have filled short at 1.0241 with no slippage then would have given you an opportunity to close out with about 7 ticks before it reversed long on the :32 bar.  After a quick reversal that reclaimed the entire spike, it trended lower and headed for a 2nd peak of 4 more ticks in the next 40 min to eclipse the S1 Pivot.  Then the final reversal achieved 21 ticks in 42 min.  The spike at 2107 was due to the release of the Chinese Trade Balance.