• AUD/USD reaches 0.6374 - it's highest level since mid December

• Next resistance around 0.6412 and 0.6428- 38.2% of 0.6941-0.6085 and 200-dma

• Friday 0.6308 low and 21-dma 0.6276 are support. Focus is on the RBA Tuesday

• Market almost fully pricing a 25bps rate cut and total of 75bps in 2025

• However, RBA FX option volatility premiums are very low - complacent?

• Premium/break-even for AUD/USD before 10-am New York Tues just 33 AUD pips

• AUD/USD option volatility risk premiums slip to new 2025 lows
AUD=


Overnight expiry AUD/USD implied volatility now includes RBA

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