FOREX THEORY
How to Trade Fundamentals With
Currency Crosses
If strong economic data comes out
of Australia, you might want to look at buying the AUD. Your first reaction
might be to buy AUD/USD.
But what if at the same time,
recent data also show the United States experiencing strong economic growth?
Price action of AUD/USD may be flat.
One option that you have is to
match the AUD against the currency of an economy that isn’t doing so well….
Hmmmm… what could you do?
Ah! Thank the forex gods for
currency crosses!
Let’s say you did some analysis,
checked the BabyPips.com economic calendar (shameless plug!) or Pip Diddy’s
daily economic roundup (another shameless plug!) and you notice that the
Japanese economy isn’t doing so good right now.
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