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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
AUD
AUD/USD overnight implied volatility sits at 15.365% as option markets price in around a ~0.9% move for the pair ahead of the upcoming February CPI print.
- Overnight implied volatility sits well below levels seen in the aftermath of the SVB crisis (~25%) and before last week's Fed meeting (~23.5%).
- Overnight risk reversals are skewed to the downside, however we remain well within the yearly range and above levels seen pre-Fed last week.
- Notable option strikes for today's NY cut, based on DTCC data, are $0.6650 (A$680mn) and $0.6800 (A$565mn).
- Today's Feb CPI print release has been highlighted by RBA Gov Lowe as a key input into next week's board meeting. The market looks for 7.2% Y/Y outcome, the prior read was 7.4% Y/Y.
Fig 1: AUD/USD O/N Volatility
Source: MNI/Bloomberg
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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