NZD/USD: Risk reversal snaps two-day uptrend as bears attack 0.6600 to renew 15-month low

NZD/USD prices lead the G10 currency pairs’ south-run during early Thursday. As a result, the one-month risk reversal (RR) of NZD/USD, a gauge of calls to puts, prints losses for the first time in three days.

Not only snapping two-day uptrend with -0.150 the figure, but the weekly RR is also favoring the NZD/USD bears. That said. the RR prints the heaviest weekly fall since late November, around -0.4000 by the press time, during a two-week fall.

It’s worth noting that the NZD/USD prices do trade in tandem with the options market signals as the quote drops 0.70% intraday while poking the lowest levels since November 2020 at the latest.

Read: NZD/USD Price Analysis: Renews yearly low under 0.6650, four-month-old support eyed

The risk-off mood seems to have taken clues from the US Federal Reserve’s (Fed) hawkish appearance during Wednesday’s Federal Open Market Committee (FOMC) meeting. However, the bears may soon take a breather as the advanced reading of US Q4 GDP looms.

Read: US GDP Preview: Inflation component could steal the show, boost dollar, already buoyed by Russia