⚠️Kiwi Front-End Vol Premium Jumps Heading Into RBNZ: Cable FX Macro

**As seen in Macro Walk report 03/31/23, subscribe at cablefxm.co.uk/reports

• NZD/USD volatility premium jumps as IV stands above 12.0% in the 1w tenor, looking richer than the historical equivalent. The differential is now at around 370bs, however, it remains within this year range. The premium saw a YTD high on the March banking crisis as short-term implied vols broke above 15.0%

• The development is similar in AUD/USD options, both RBA and RBNZ are set to deliver monetary policy decisions this week. Despite the heavy docket, AUD/USD IV 1w tenor saw declines this week, while the NZD/USD equivalent rose