FX options warned of FX volatility and risk aversion this week nL1N2KV1RU

Still caught off guard by extent of moves overnight, especially AUD/USD

Its high beta to risk saw biggest G10 volatility and downside premium gains

1-month implied volatility 10.25-12.05, 3.0 above Feb low, setbacks limited

1-month risk reversal biggest one day drop since March, to highs since June

Premium for AUD puts over calls (spot downside) 1.0 to 2.0

Market clearly wary of more volatility/spot losses

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