NZD/USD slides towards 0.6290 support as options market turns most bearish in seven weeks
|NZD/USD holds lower grounds near the intraday bottom surrounding the 0.6300 threshold as European traders flex muscles during Wednesday’s early hours.
In doing so, the Kiwi pair traces the options market’s clues as the Risk Reversal (RR), calculated as the difference between call and put options, drops the most since early November 03.
With the daily RR of -0.240 at the latest, the NZD/USD options market snaps consecutive four weeks of bullish signals with the latest weekly RR being negative.
The reason could be linked to the US Dollar’s recovery, as well as downbeat New Zealand trade numbers for November. Additionally, mixed concerns surrounding China and anxiety over the bond market moves seem to also weigh on the NZD/USD prices.
Looking forward, the US Conference Board (CB) Consumer Confidence figures for December, expected at 101.00 versus 100.00 prior, will be important to watch for fresh impulse. Additionally, headlines surrounding China, Japan and bond markets will also be crucial for clear directions.
Also read: NZD/USD seesaws near 0.6350 even as New Zealand trade deficit increases
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.