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AUD/USD ignores strong options market signals to grind lower past 0.7100

AUD/USD remains pressured towards 0.7050 amid early Thursday morning in Europe. The Aussie pair’s latest weakness could be linked to the US dollar’s consolidation of the US inflation-led slump. In doing so, the AUD/USD prices ignore the heavily optimistic signals marked by the options market.

That said, the one-month risk reversal (RR) of the AUD/USD jumped the most since early June 2022 on the daily basis, while flashing 0.190 figures at the latest. It should be noted that the Aussie RR, the difference between the call options and the put options, also rose for the sixth consecutive day by the end of Wednesday’s North American session.

On the same line, the weekly RR braces for the biggest positive readings in nearly three months while flashing the 0.370 mark by the press time.

It’s worth observing that Australia’s downbeat prints of Consumer Inflation Expectations for August, to 5.9% from 6.3%, also exert downside pressure on the AUD/USD prices.

Also read: AUD/USD skids to near 0.7070 as Aussie Consumer Inflation Expectations slip to 5.9%

Author

Anil Panchal

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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