Jun
29
Hedge Funds Pile Into Aussie Options Betting RBA Joins Hawks
By-
Implied volatility surges for 1-week Australian dollar options
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Volatility picking up around RBA, Riksbank policy meetings
Speculators looking to profit from the hawkish shift among global central banks have a fresh target: the Australian dollar.
With the pound, euro and Canadian loonie all surging more than 2 percent this week after officials signaled a bias toward tightening monetary policy, hedge funds are piling into Aussie options on expectations the Reserve Bank of Australia will follow suit. Implied volatility contracts with a tenor of one week surged to 8.0975 Thursday, the highest since June 14. Speculators added almost $1.5 billion of options on the Australian currency at a strike price of 77 U.S. cents, DTCC data show…
Hedge Funds Pile Into Aussie Options Betting RBA Joins Hawks
