AUD/USD risk reversals hit 5-month high

Risk reversals indicate falling demand for AUD bearish bets.

Omkar Godbole FXStreet Contributor

The one-month 25 delta risk reversals rose to -0.425 today; the highest level since July 27. The steady rise from the November low of -0.80 indicates falling demand for the AUD put options (bearish bets).

It adds credence to the recovery in the 10Y AU-US yield spread from the Nov. 30 low of 10 basis points to 20 basis points. However, the AUD/USD still trades below the 200-day MA of 0.7692.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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