AUD/USD leans bearish near 0.6700 on downbeat options market signals

Anil Panchal FXStreet

AUD/USD retreats from intraday high to 0.6700 amid early Friday morning in Europe. In doing so, the Aussie pair takes clues from the options market while defending the previous day’s bearish bias that portrayed the quote’s heaviest slump in 33 months.

That said, the one-month risk reversal (RR) of AUD/USD, a gauge of calls to puts, drops the most in three weeks on daily basis, per data source Reuters. That said, the spread between call and put options prints -0.035 level by the press time.

The bearish bias in the options market could be linked to the broad pessimism surrounding global economic transition and central bankers’ moves. Also likely to have weighed on the sentiment could be the US-China tussles, not to forget the dragon nation’s lack of ability to convince traders of the economic recovery.

It should be noted, however, that the weekly RR remains firmer for the fourth consecutive time, to 0.130 at the latest, which in turn challenges the downside bias amid Friday’s sluggish start.

Also read: AUD/USD extends its recovery to near 0.6740 as risk off impulse eases, US PMI in focus

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.

AUD/USD remains below 0.7000 amid light trading

AUD/USD fills a modest bearish gap on Monday, but remains below 0.7000 in the Asian session amid holiday-thinned liquidity. The US Dollar attempts a bounce even as US bond yields pull back from multi-year highs, limiting the pair. Moreover, diminishing odds of another RBA rate hike in November cap the Aussie.

USD/JPY hovers above 158.00 amid Japan/ US holiday

USD/JPY extends its range-bound price action into a new week, trading above 158.00 as bulls remain on high alert amid speculation that authorities will step in to prop up the Japanese Yen. Meanwhile, softer US bond yields keep US Dollar bulls on the back foot and cap the pair's upside. However, geopolitical uncertainties could limit losses for the safe-haven buck amid thin liquidity due to a holiday in Japan and the US.

Gold remains vulnerable below $4,200 on Fed hike bets

Gold is under mild selling pressure on Monday, trading at around $4,170. The US Dollar advances modestly in thin trading, supported by bets that the Federal Reserve will hike rates at least one more time before year-end.

Bitcoin struggles as ETF outflows, geopolitical uncertainty weigh

Bitcoin hovers around $83,600 on Monday after a 3.1% correction last week. US-listed spot ETFs recorded an outflow of $681.10 million last week, snapping the three-week inflow streak. Geopolitical uncertainty and mixed signals keep investors cautious.

The week ahead: A critical week as earnings and CPI test market

The Oil price is relatively stable this morning, and US and European stock markets are poised to open higher, as risk sentiment shrugs off an escalation in the Middle East and concerns about rising bond yields.

Has Bitcoin really escaped the macro forces it was built to fight?

Over 17 years ago, Satoshi Nakamoto designed Bitcoin (BTC) on the back of a global financial crisis as an alternative to the global monetary system outside the control of central banks, governments and traditional intermediaries. This raises a key question: has Bitcoin really become independent of the macroeconomic forces it was built to challenge?