• Overnight option expiry is now 10-am New York Tuesday - AUD/USD includes RBA

• Economists expect 25bps hike, market not so sure - raises FX volatility risk

• Overnight expiry implied volatility gauges realised volatility risk

• Broader G10 FX implied volatility lower since NFP, overnight AUD holds firm

• Overnight AUD/USD implied volatility at 17.0, premium/break-even 46 USD pips

• Highest premium since September, approx 3.0 above non-event day expectations

• Benchmark 1-month regains 9.8 vs 9.35 Friday- expiry also includes Dec 5 RBA

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