Apr 022012

6A 06 12 (1 Min) 04.02.12

4/2/2012 RBA Rate Statement / Cash Rate (1830 HI time / 0030 EDT)
Forecast: 4.25%
Actual: 4.25%
Started @ 1.0355
1st Peak @ 1.0380 – 1831 (1 min)
25 ticks

Reverse to 1.0321 – 1835 (5 min)
59 ticks

Reverse to 1.0308 – 1841 (11 min)
72 ticks (2x bottom)

Notes: At its meeting today, the RBA decided to keep interest rates unchanged. Traders initially bought as there was a small chance the RBA would cut interest rates. Then the comments of moderate to slow growth caused the negative bias and selling. This caused a 25 tick spike, followed by a large reversal of more than 70 ticks 10 min later. If using JOBB, you would have gotten in long at about 1.0365. After the spike, the market hovered for 11 sec between 1.0371 and 1.0380 as it hit resistance at the R1 line. Close out here as it reversed significantly after that. The spike and the reversal did not have any problems cutting through the major SMAs as it was trading in a narrow FIST before the report, but broke through long and short with ease.