Trading Signals and News Update For Wednesday.

There will be only one thing that I will be watching, and possibly trading.

1. Wednesday, October 10th, 2007 (9:30 p.m. New York Time) USA
At 9:30 p.m. we will have Australian Employment Change coming out. It is expected to come out at 20,000 versus 32,000 last month. If it comes out at 35,000 or higher, that would be bullish for the Australian dollar, and AUD/USD may possibly move up by 40 pips or more in the first hour of the report. It may move a lot more if the deviation is bigger. On the other hand, if it comes out at 5,000 or lower, that would mean the employment market may be cooling, and that would probably be somewhat negative for the Australian dollar, and AUD/USD may possibly go down by 40 pips or more in the first hour of the report. I think the employment change is important at this moment as Australian dollar has been extremely strong recently because there were a lot of very strong indicators proving big strength of the Australian economy, and if the employment is better than last month, I think it is going to continue this trend. On the other hand, if the employment collapses to 5,000 or lower, people will start reconsidering that maybe Australian economy is slowing down as well, and I think AUD/USD may temporarily dive down. I would let the spike happening on this one, and then try to get in within 10 to 15 pips of the pre-release price, depending on how big the deviation is, and depending on any revisions and conflicts with the unemployment rate. Conflicts are very rare here.

SUMMARY:
* Report: Australian Employment Change
* Buy on AUD/USD if the number will be 35 K or higher
* Sell on AUD/USD if the number will be 5 K or lower
* If the trigger is hit, expect 40 pips or more in the first hour of the report.

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