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
This article was originally published by Fxstreet.com.Read the original article here.
