The AUD/USD fell more than 50 pips earlier today after the ABS reported a sharp slowdown in Australia's growth rate in the September quarter.
Further, the dismal GDP reading seems to have put a bid under the AUD puts. This is evident from the drop in the one-month 25 delta risk reversals (AUD1MRR) to one-week low of -0.825 from yesterday's level of -0.70.
The negative number indicates the implied volatility premium or demand for the AUD puts is higher than that for calls. So, a drop from -0.70 to -0.825 indicates the demand or value for put options has increased today.
Simply put, the investors are adding bets to position for a weakness in the AUD.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.