The Commerce Department’s new reading on gross domestic product for the July-to-September quarter was slower than the 2.8 % growth rate estimated a month ago. Economists had predicted this figure would remain the same in the final estimate of the quarter’s GDP – the value of all goods and services produced in the United States. Revised number stands at 2.2%. It seems that consumers didn’t spend as much, commercial construction was softer, business investment in equipment and software was weaker than previously reported. This is not the first time that third quarter outcome was revised down. Original estimated had been 3.5%, which was than lowered to 2.8% only to shrink once again today. Why is it? Why publish incomplete data, or one that is subject to change? I’m sure somebody could provide more or less convincing explanation, but I still think it is dubious practice.

On the other hand, markets need “food” and this was another bone for everybody to chew on. Canadian Dollar appears to be benefiting from this news and USD as well, but to a smaller degree. I’m not very active these days, don’t want to be stuck with bunch of trades before the break, but I’m following with moves covered in this blog, because they are high probability set ups.  I have been bearish AUD-CAD for some time, with one positive trade taken earlier. Now second trade was closed.

I waited for price to go through the low formed around exit to the first trade, which happened at 0.9430. My original analysis of daily chart indicated possibility of move to 0.9320. Earlier trade brought 71 pips, another leg down suggested another 100 pips. Actual exit produced 98 pips. This concludes my interest in AUD-CAD, for now at least. Situation I was following played itself out and I have to look and/or wait for another one elsewhere.

One more trade involving Australian Dollar have been featured here recently. I’m tracking EUR-AUD with price action trade. Today stop/loss was moved to new minor low established during the weekend. This current level is at 1.6047. It will be adjusted/moved again when next low is formed. Using intermediate term chart, 4H, this means days. Most likely this trade will last for some time with updates as warranted.
Last Forex trade presented here and under way, long CHF-JPY,  will be updated tomorrow, before holiday break. Well deserved one, at that, and if somebody disagrees, I don’t really care.

Mike K.