I had a look through the available index CFDs from CMC Markets and couldn't find one for the Shanghai Market. The closest appears to be the HK33 Index. I was planning to trade that Index but the chart hasn't updated since mid-morning Monday, so I'm not sure if this index is trading or CMC Markets has suspended it due to the big falls in the Chinese Market this week?
Anyhow, I instead went back to trading the AUDUSD spot rate. The AUD had risen sharply in the past couple of days on speculation that good economic figures, low unemployment, increasing job vacancy ads, and a slight recovery in the housing construction industry might push the Reserve Bank towards increasing our interest rates another 0.25% tomorrow morning. I personally doubt that there is enough inflationary pressure yet to warrant another rise - after all inflation has dropped back within the target range, and so far there hasn't been any evidence of wage pressures resulting in a general wage breakout. I discovered that I can manually edit the $ amount being traded - rather than just $50K or $100K I can enter a $25K trade. So I sold $25K of the AUD at 0.8330 yesterday evening. As usual when I go short the AUD kept increasing today, so I've lost a bit on this trade so far, but at least it was only costing me $2.50 a point with this size position. The AUD has reached close to the 22-year high this evening, so I sold another $25K at $0.8370. I now have a total short position of $50KAUD at an average price of $0.8350. I'll leave this position open and see how the price reacts when the Reserve Banks decision is announced tomorrow morning. Hopefully if there is no rate rise the AUD will drop back slightly...
Enough Wealth
No comments:
Post a Comment