• 1-month AUD/USD implied volatility rallied 8.6 to 10.5 between Feb 19-Mar 10

• Setbacks have found support at 9.25 since March 13 - trades 9.25 again Tues

• Current levels offer potential value when compared with realised volatility

• 1-month daily realised volatility is 9.25, hourly just below at 8.9

• Spot doing enough within recent 0.6200-0.6400 ranges to justify long vol

• However, if realised volatility isn't sustained, implieds will suffer
AUD/USD 1-month expiry option volatility measures

(Richard Pace is a Reuters market analyst. The views expressed are his own)