February 2, 2023

NZD/USD options market signal turn most bullish in three weeks

NZD/USD retreats from the eight-month high as bulls take a breather ahead of the second round of central bank dossier during early Thursday.

In doing so, the Kiwi pair keeps the Federal Reserve (Fed) inspired gains around 0.6530 by the press time.

That said, the Fed’s dovish rate hike triggered the strongest bullish options market sign for the NZD/USD traders.

A one-month risk reversal (RR) of the NZD/USD pair, a ratio of call options versus put options, prints a +0.080 figure at the latest. With this, the Daily RR prints not only snap a two-day winning streak but also mark the highest level in three weeks.

It’s worth noting, however, that the weekly RR still remains negative, suggesting the bear’s dominance, for the third time in a row as it prints -0.165 figure at the latest.

Also read: NZD/USD struggles to surpass 0.6530, upside remains favored ahead of US NFP

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