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Oct 20 - 07:55 AM
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AUD/USD - Options Trend Lower: NZD Propped By Election Risk
By Richard Pace — Oct 20 - 06:10 AM
• AUD/USD implied volatility edges lower as spot recovers from 15 Oct lows since June at 0.6895
• Benchmark 1-month expiry last traded 7.4 from 5-month highs at 8.3 in early October
• Risk reversals maintain a downside over upside strike risk premium, but it's also edging away from recent highs
• NZD/USD options follow suit, but shorter date expiries underpinned by impending 7 Nov NZ election risk
• 1-month NZD implied vol is 8.7 from recent and multi month
highs at 9.0
AUD/USD FXO implied volatility
AUD/USD 25 delta risk reversals
NZD/USD FXO implied volatility
(Richard Pace is a Reuters market analyst. The views expressed are his own)
Source:
London Stock Exchange Group | Thomson Reuters