6/4/2012 RBA Rate Statement / Cash Rate (1830 HI time / 0030 EDT)
SPIKE WITH 2ND PEAK
Started @ 0.9720
1st Peak @ 0.9769 – 1831 (1 min)
Reversal to 0.9748 – 1831 (1 min)
2nd Peak @ 0.9779 – 1833 (3 min)
Reverse to 0.9744 – 1841 (11 min)
Notes: With the Economic crisis in the Euro-zone and the poor US Job #s out the previous week, the RBA felt compelled to cut rates another 25 BP. This was the more likely scenario and the midpoint of leaving rates unchanged or cutting another 50 BP. The market shorted about 30 ticks on the :30 bar prior to the report. JOBB would have triggered when the price was at 0.9720 and filled long around 0.9735 with slippage. Then you would have the opportunity to close out with about 20 ticks minimum. The up spike crossed all 3 major SMAs and teetered on the R2 Pivot. Then it went for a 2nd peak 10 ticks higher before reversing for 35 ticks back to the cluster of SMAs. Then the volume and volatility calmed down to settle into a slow rise pattern.