NZD/USD: Upbeat options market signals probe bears below 0.6400
|NZD/USD pares intraday gains around 0.6375 during early Tuesday as options market signals put a floor under the Kiwi prices even if the US Dollar strength probe the pair buyers.
That said, one-month risk reversal (RR) of the NZD/USD pair, a ratio of call options versus put options, prints a +0.105 figure at the latest. With this, the Daily RR prints a three-day winning streak while posting the highest levels since December 30, 2022.
It should be noted that the NZD/USD pair’s weekly RR jumped the most in one month by the end of Friday, with a +0.120 figure, and snapped the two-week downtrend before printing the consecutive second weekly positive figure of +0.105 RR number.
On the other hand, the recent swing in the Federal Reserve (Fed) policymakers’ comments, favoring aggressive rate hikes of late, seem to join the easing optimism surrounding China to weigh on the NZD/USD prices. However, a comparatively more hawkish bias for the Reserve Bank of New Zealand (RBNZ) keeps the pair buyers hopeful.
Also read: NZD/USD retreats towards 0.6350 with eyes on Fed Chair Powell
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.