AUSTRALIAN DOLLAR AT RISK AHEAD OF RBA MEETINGThe Australian Dollar appears to be like ripe for volatility surrounding the most r
AUSTRALIAN DOLLAR AT RISK AHEAD OF RBA MEETING
- The Australian Dollar appears to be like ripe for volatility surrounding the most recent RBA financial coverage replace on deck for launch Tuesday, February 04 at 3:30 GMT
- Aussie foreign exchange merchants might react violently to the RBA rate of interest choice with AUD/USD, AUD/JPY and AUD/CAD in a single day implied volatility spiking to 5-month highs
- In a single day swaps are at present pricing a tough 20% chance that the RBA cuts its official money charge by 25-bps however dovish steerage may weigh negatively on AUD value outlook
Currency volatility anticipated within the Australian Greenback is at extremes forward of the upcoming rate of interest choice from the Reserve Financial institution of Australia (RBA). The RBA is because of launch its newest monetary policy replace on Tuesday, February 04 at 3:30 GMT and has correspondingly pushed Australian Greenback in a single day implied volatility readings to multi-month highs.
CHART OF AUSTRALIAN DOLLAR IMPLIED VOLATILITY (OVERNIGHT): AUD/USD, EUR/AUD, GBP/AUD, AUD/JPY, AUD/NZD & AUD/CAD
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Particularly, AUD/USD in a single day implied volatility of 11.8% ranks within the prime 97th percentile of measurements taken during the last 12-months and is its highest studying since August 14.