FX.co ★ Trading tips for AUD/NZD

The Reserve Bank of Australia raised interest rates by 50 bp at once, surprising traders and analysts who only expected a 30-bp increase.

The event has caused the Aussie to rise against all currencies, including in the AUD/NZD pair, which once again hit a new yearly high. And considering that the pair already moved by 8,500 pips since 2021, traders can start a grid of sell limits in order to gain profit.

So, starting from the current prices, set up a grid of sell limits in an increment of 300-500 pips. Take profit on a breakout, either at 1 pip above the first order or after a 1,000 pip movement.

This strategy is called grid trading, which is usually used on cross rates. It involves holding positions that are significant in time and distance. For this reason, we recommend using swap-free accounts, not increasing the volumes in the grid (0.01 standard lot for every $ 1,000 of the deposit) and monitor price movements.

Good luck and have a nice day!