The recent rally in the Australian dollar vs the greenback peaked at the end of last year, we have seen a decent pullback for most of this month
Levels around 0.6650 have previously acted as support, the area saw bids while the spot neared its 50DMA at 0.6638. The 50-day was breached on Tuesday's session, this is the first close below the 50DMA since mid-November
AUD/USD volatility structure is higher on the day as 1w vols rise 62bps to 9.935%, and the 1m tenor reads at 10.055%, the latter captures the first RBA meeting of the year. Risk reversals favour puts over calls by 40.7bps vs the 32bps highs seen on Monday
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