• 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)