The biggest Australian dollar option strike on the calendar hits tomorrow as $716 million goes off at 0.9500 at 10 am ET.
Below spot there are bids at 0.9450 in large size. On a risk/reward basis it’s a coin flip to buy at spot levels with a stop at 0.9450 but there’s a reasonable basis to think the expiry will have an impact. On Friday, a whopping $1.8B expiry pulled the pair to 0.9600.
The calendar is light in Asia and Chinese stocks are oversold after 6 days of losses — both factors working in AUD/USD’s favor.
