AUD/USD bulls justify options market optimism around 0.70000

Anil Panchal FXStreet

AUD/USD retreats from intraday top but stays on the way to post the biggest weekly gains since late March as cautious optimism weighs on the US dollar of late. That said, the pair eases from the daily top of 0.7024 to the 0.7000 threshold heading into Thursday’s European session.

The Aussie pair’s upbeat performance in the weekly timeframe could be linked to the options market optimism, as known by the risk reversal (RR) data derived from the spread of calls and put options.

It’s worth noting that the one-month RR for the AUD/USD snaps a four-day downtrend to +0.362, the highest since late March, on weekly basis. The daily RR, however, rise for the second consecutive day to 0.100 at the latest.

Read: AUD/USD Price Analysis: Pierces 50- and 200-EMAs near 0.7000 decisively, 0.7200 eyed

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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