AUD/USD: Risk Reversals flat lined, Vols hit one-month low

The bullish move in the AUD/USD pair has stalled around 0.7940 levels this Thursday morning in Asia after the data released in Australia showed the full time jobs unexpectedly declined in July. 

Daily chart

Wednesday’s sharp gains mark a rebound from near rising trend line support. This is encouraging sign for the AUD bulls, although the options market isn’t convinced. 

Risk Reversal and Vols

The one-month 25-delta risk reversal improved only slightly from -1 to -0.95. Moreover, the negative reading shows the Put options are in demand. Furthermore, the one-month ATM volatility fell to 7.845 today, the lowest level since July 17.