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Overnight Volatility Slightly Elevated, Within Recent Ranges Ahead of Jobs Data


AUD/USD overnight implied volatility sits at 14.30% as option markets price in a $0.6366-$0.6479 range in the aftermath of today’s July Labor Market Report.

  • Overnight implied volatility is slightly elevated ahead of this morning's jobs data but remains well within recent ranges.
  • Overnight risk reversals are skewed to the downside, however we sit well above levels seen pre-SVB crisis and within the yearly range.
  • Based on the latest DTCC there is a $1.46bn expiry at $0.6550 at today's NY cut.
  • Short term trend conditions remain bearish, the pair breached the bear trigger yesterday. Support comes in at $0.6403, 76.4% retracement of the Oct 22-Feb 23 bull leg, $0.6387, low from 10 Nov 22, and $0.6285, low from 4 Nov 2022. Resistance is at $0.6522, high from Aug 15, and $0.6593, 20-Day EMA.

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