FX TRADING STRATEGY FOR NOV 07

Here's what happening Today

1. Tuesday, November 7th, 2006 (5:30 pm New York Time) AUSTRALIA
We have Interest Rate statement released out of Australia tomorrow. It's pretty unanimously expected that Australia will hike the rate from current 6% to 6.25%. If that happens, it's already expected and priced in, so that would be a no trade. However, if Australia keeps the rate unchanged at 6%, I may possibly go short on AUD/NZD. If Australia for some reason hikes the rate to 6.50%, I may possibly go long on AUD/NZD. In either scenario, I am expecting a possibly move of at least 100 pips either direction, in case Australia does either no hike or a hike by half a point as opposed to quarter point which is priced in and expected.

I'll also be watching for comments that are made together with the interest rate statement. If Australia will hike the rate to 6.25% and makes certain comments that will hint on further rate hikes this year, I may possibly go long on AUD/NZD. If their comments signify that this will probably be the last rate hike for a while, then I may possibly go short on AUD/NZD.