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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 25.24% as option markets price in ~1.6% move for the pair in the aftermath of the FOMC rate decision.
- The implied vol whilst elevated sits below levels of volatility seen at the height of the SVB crisis which was the highest level observed in 2023.
- Overnight risk reversals are skewed to the downside, however we remain well within the yearly range and above levels seen post-SVB collapse.
- At NY cut today A$411mn expiry at $0.6750, the level is a just above resistance of $0.6748 the high from Mar 7. Downside support comes in at $0.6590, 61.8% retracement of the Oct-Feb bull cycle.
Fig 1: AUD/USD Overnight Implied Option 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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