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Currency hedging volumes slightly less......>

OPTIONS
OPTIONS: Currency hedging volumes slightly less impressive Tuesday, with better
activity in AUD/USD and USD/KRW countered by below average trading in EUR/USD
and GBP/USD options.
-AUD/USD options plays appear to have been triggered by the break above the
100-dma in spot markets, with the pair hitting a three week high at $0.7152
today. There's been relatively little bias toward either puts or calls in
AUD/USD trades so far Tuesday, with most of the larger trades appearing to be
volatility plays: in the late Asia-Pacific session a series of $0.6840 9-month
put strikes traded (A$611mln spread over three legs) as well as $0.7435 6-month
call strikes (A$597mln spread over three legs).
-Similarly in USD/JPY, one of the more interesting trades crossing overnight
included a 6-month Y106.10/112.70 strangle for a total notional of over $500mln.

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