AUD/USD risk reversals hit 3-month high

The technical recovery in the AUD/USD pair is likely to continue, indicates the risk reversals gauge.

Risk reversals

The one-month 25 delta risk reversal rose to -0.538; the highest level since Sep. 8. Though negative, still the improvement in the risk reversals indicates falling demand for the AUD puts.

Also, the AU-US 10-year yield is rising in the AUD positive manner as well. The spread currently stands at 20 basis points vs. recent low of110 basis points.