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AUD/NZD Hedging via Options Helps Prop Slow Market

OPTIONS

Currency options markets pretty sanguine so far Thursday, with most front-end vol curves lower across developed markets.

Cross that stands out so far today is AUD/NZD, seeing well above average trade Thursday after a relatively busy European morning. Upside hedging has been in demand, with 1.0750 call strikes seeing decent interest, while volatility hedges (notably a 1.0545/1.0910 strangle) have also helped prop up activity.

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