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Options markets telling the story of two....>

OPTIONS
OPTIONS: Options markets telling the story of two different currencies today,
with AUD and EUR hedging activity well above average for this time of day.
- With the EUR circling multi-year lows against the dollar, EUR puts have traded
well, with 1.0785, 1.0700 and 1.0665 strikes in demand. One of the more
interesting trades crossing was a diagonal 2y/1y 1.00/1.04 put spread that
crossed in early Europe.
- Similarly, AUD/USD downside trades are the dominant directional strategy with
0.6675 put strikes in particular proving popular. RBA minutes overnight were
read as dovish, which helped stimulate plenty of downside hedging in the
European morning. This has been mirrored in the turn lower for short-end AUD/USD
risk reversals today.

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