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From Friday's MNI FX Options Monitor: - AUD...>

FOREX
FOREX: From Friday's MNI FX Options Monitor:
- AUD and NZD Vols fell sharply from mid-February, mimicking the broader price
action across G10 FX before seemingly bottoming out in April. This week's price
action has cemented a recovery in antipodean vol markets, with focus turning to
looming rate decisions from the Australian and New Zealand central banks due
next week. Ahead of the event, AUD/USD and NZD/USD risk reversals have ticked
lower over a 1m horizon with traders appearing to load up on volatility bets
ahead of the event via straddles and strangles. One of the larger trades
crossing in NZD/USD markets included a N$398mln $0.6500/0.6575 put spread
rolling off at the NY cut directly following the RBNZ's decision. The position
would break even at around the $0.6566 level.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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