Risk reverals show rising demand for out of the money AUD put options (bearish bets). Investors are likely expecting a deeper drop in the Aussie – dollar a proxy for China. The AUD/USD one-month 25 delta risk reversals dropped to -1.00 today – the lowest level since June 29, indicating the implied volatility premium for AUD puts (demand for AUD puts) is higher than that of AUD calls. It could be argued that investors are likely expecting a deeper drop in th Aussie dollar and hence are seeking downside protection, i.e. buying put options. At the time of writing, the Aussie dollar is trading at 0.7355, having clocked a high and low of 0.7375 and 0.7318, respectively. PBOC’s massive CNY devaluation is likely hurting the Aussie dollar and other antopodeans and could force the Fed and Trump administration to launch a counter attack. The technical charts indicate the path of least resistance is to the downside and bigger losses could be in the offing if th currency pair closes below the July 2 llow of 0.7310. Hourly chart Spot Rate: 0.7350 Daily HIgh: 0.7375 Daily Low: 0.7318 Trend: Bearish Resitance R1: 0.7382 (5-day moving average) R2: 0.7402 (10-day moving average) R3: 0.7441 (previous day’s high) Support S1: 0.7328 (May 2017 low) S2: 0.7310 (July 2 low) S3: 0.7145 (May 2016 low) FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next US Sec. of State Pompeo: Claims Trump is weak with Russian President Putin are ‘absurd’ FX Street 5 years Risk reverals show rising demand for out of the money AUD put options (bearish bets). Investors are likely expecting a deeper drop in the Aussie - dollar a proxy for China. The AUD/USD one-month 25 delta risk reversals dropped to -1.00 today - the lowest level since June 29, indicating the implied volatility premium for AUD puts (demand for AUD puts) is higher than that of AUD calls. It could be argued that investors are likely expecting a deeper drop in th Aussie dollar and hence are seeking downside protection, i.e. buying put options. At the time… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
