NZD/USD takes offers to refresh intraday low near 0.6260, extending the previous day’s downbeat momentum, while tracing the recently bearish options market signals.
That said, the Risk Reversal (RR), calculated as the difference between call and put options, drops the most in a week while posting the consecutive second negative daily RR with the latest -0.100 figures.
It’s worth noting that the weekly RR also braces for the second negative print after snapping the four-week uptrend in the last, to -0.110 at the latest.
The reason could be linked to the US Dollar’s recovery, mainly due to the latest rebound in the US Treasury yields.
Even so, the lack of major data/events joins China-linked market optimism to challenge the NZD/USD bears.