How to Trade the Australian GDP Final Consumption: A Comprehensive Guide


The Australian GDP Final Consumption report provides valuable insights into the expenditure patterns of the Australian economy. This guide will share the exact strategy that professional traders use to take money from the 95% of losing retail traders. By following our step-by-step guide, you’ll learn how to level the playing field and effectively trade the Australian GDP Final Consumption report.

Understanding the Australian GDP Final Consumption

The Australian GDP Final Consumption, released quarterly by the Australian Bureau of Statistics (ABS), measures the total expenditure on goods and services in the economy. It includes both private and government consumption, reflecting the overall demand in the economy.

Why Australian GDP Final Consumption Matters

Why Australian GDP Final Consumption Often Won’t Move the Market

Trading Strategy for Australian GDP Final Consumption

Step 1: Analyze Reserve Bank of Australia (RBA) Priorities

The first step is to understand what data points the RBA is currently focused on. If the RBA is focused on consumption data, then the data point will have a significant amount of volatility because the RBA is in some way basing its interest rate decisions on that data release. To quickly determine the RBA’s current focus, you can use our Professional Economic Calendar, which includes a fundamental guide. This resource helps traders stay updated on the data points that matter most to the RBA, providing a strategic advantage.

Step 2: Use High-Low Expectation Forecasts

Professional traders rely on high-low forecasts to gauge market expectations accurately. Here’s a more detailed look at why these forecasts are crucial:

Understanding High-Low Forecasts

Economic forecasts are derived from surveys of credible institutions, each providing their best estimate on upcoming data points. Retail calendars typically present the median of these estimates, which can be misleading. The median forecast doesn’t reveal the full range of expectations and, therefore, doesn’t indicate how surprising an actual data release is compared to the extremes of analysts’ projections. In contrast, professional economic calendars include both high and low estimates. This additional information shows the analysts’ expectations at the extreme ends of their projections. Great trading opportunities arise when data releases fall outside these high and low estimates, creating market shocks that move prices significantly.

Step 3 - Choosing the Most Volatile Instrument to Trade

Using insights from institutional reports, traders can select the most responsive currency pairs. For example, if AUD/USD is particularly sensitive to economic data as outlined by the City Economic Surprise Index and the Australian GDP Final Consumption shows a significant deviation, this pair could be an ideal target for trading.

Trade Execution Steps

  1. Confirm RBA Focus: Ensure the Reserve Bank of Australia is currently emphasizing consumption data. If consumption is a primary focus, the Australian GDP Final Consumption report will have a higher likelihood of moving the market. Remember, if the central bank is focused on the data point, it’s because they are using that data point to make a decision on rates. This is the reason data points that are focused on cause volatility.
  2. Check Forecast Ranges: Before the data release, review the high and low forecast expectations for the event. Plan to trade only if the actual data significantly exceeds the high estimate or falls below the low estimate. This strategy ensures you act on genuinely surprising data and there will most likely be a follow-through reaction.
  3. Monitor Revisions: Check for any conflicting revisions in the data, as these can alter the initial market reaction. Make sure the primary release and any revisions align to support your trade.
  4. Enter Trade Promptly: Once you confirm the deviation, act quickly to enter your trade. Enter within the first 30 seconds. Speed is crucial, as market reactions to significant data surprises happen rapidly.
  5. Set Stop and Take Profit:
    • Stop-Loss: Place your stop-loss below the low of the initial spike candle to protect against adverse movements.
    • Take Profit: Aim for 15-30 pips for tier two events like the Australian GDP Final Consumption, adjusting based on market conditions and volatility.

Managing the Trade


While the Australian GDP Final Consumption report may not always lead to significant market movements, understanding its nuances and using a professional trading strategy can help you capitalize on unexpected deviations. If you don’t have the tools mentioned above, try out our Professional Economic Calendar Package and use institutional tools to level the playing field. By following these steps, you’ll be well-prepared to trade the Australian GDP Final Consumption report effectively, leveraging the same strategies that professional traders use to profit from this economic data release.

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