Post-RBA: Aussie drops, risk reversals resilient

The RBA jawboned the AUD/USD pair to 0.7792 levels, however, the one-month 25-delta AUD/USD risk reversals gauge is showing no signs of deterioration.

One-month 25-delta Risk Reversals

The risk reversals figure has improved to -0.70 from the previous day's print of -0.80. The negative print does indicate that Puts [bearish bets] are more in demand. However, the fact that the risk reversal stands above the previous day's level of -0.80 despite the RBA's jawboning of the AUD could be an indication that the sell-off in the AUD/USD from the high of 0.8125 may have run its course.