AUD/USD: Risk reversal braces for biggest weekly fall since November

Anil Panchal FXStreet

One-month risk reversal (RR) of AUD/USD drops the most since November 26 on weekly basis, per data source Reuters. That said, the spread between call and put options prints -0.150 level at the latest.

The daily print, however, shows an easing bearish bias with the -0.25 level for Wednesday, versus the -0.150 figure for the previous day.

Although the options market portrays the trader’s bearish bias on the weekly format, AUD/USD prices consolidate the recent losses around 0.7200 by the press time of the pre-European session on Wednesday.

That said, risk-off mood and firmer US Treasury yields are the key catalysts that seem to weigh on the AUD/USD prices of late. However, cautious optimism by the Aussie policymakers and an absence of major data/events seem to limit the pair’s further downside.

Read: AUD/USD Price Analysis: Bounces off six-week-old support towards 0.7200

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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