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Aug 28 - 06:55 AM

AUD/USD - Massive FX Option Strikes May Dominate AUD/USD For Now

By Richard Pace  —  Aug 28 - 04:45 AM
  • AUD/USD heavy with other G10 currencies vs USD, but faces huge options

  • There's a massive A$2.4-billion 0.6410 strike expiry 10-am New York Monday

  • Also 1.6-billion 0.6420-30 Monday, While Tuesday has A$1.2-billion at 0.6400

  • Related cash hedging flows might help keep AUD/USD near strikes pre expiry

  • However, China concerns and firmer USD should maintain AUD/USD pressure

  • 0.6380 was Fri's low, 17 Aug and 2023 low 0.6365 remains vulnerable

  • Break opens Nov 3 0.6273, Resistance at 24 Aug recovery high 0.6488

For more click on FXBUZ

Source:
Refinitiv IFR Research/Market Commentary

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