Market makers seem to have found themselves slightly long options into the RBNZ rate decision later on Tuesday. The desk has seen virtually no last minute interest from clients. The event is starting to look like good value from decent levels, particularly in AUDNZD where 1w is r-6.25. The desk has seen decent topside AUDNZD interest over the past couple of weeks, and in that context a lw 1.04 put at 6.25 vol looks like a pretty decent directional hedge to existing long positions.
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