AUD/USD bounces off daily low under 0.7100 as options market flash upbeat signals
|AUD/USD picks up bids to defend the buyers, despite the recent pullback from a fortnight top, as the options market players battle the risk-off mood heading into Tuesday’s European session. That said, the Aussie pair lost 0.30% intraday by flashing the 0.7085 as a quote by the press time.
One-month risk reversal (RR) of AUD/USD, a spread between calls and puts, remains steady at around 0.1000 on weekly basis. It’s worth noting that the weekly RR jumped the most since November 2020 for the latest full week.
On a daily basis, the RR figures remain mostly unchanged around 0.10 whereas the monthly prints consolidate the heaviest fall since March 2020, up 0.175 at the latest.
Although the options market keeps AUD/USD buyers hopeful, challenges to risk sentiment seem to weigh on the Aussie prices of late.
Read: AUD/USD Price Analysis: Further downside eyes 0.7040 support confluence
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