• FX option implied volatility spiked higher with the USD post Powell Tuesday

• Benchmark 1-month expiry prices added around 0.5, with AUD/USD up 1.0

• Those gains reversing now as USD eases before Friday's U.S. NFP

• However, USD/JPY implied volatility hasn't followed suit - flags BoJ risk

• AUD/USD option implied volatility could be best risk hedge on setbacks

• High beta to risk and its current policy divergence can offer value

  
  

  
  

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