NZD/USD: Upbeat options market signals probe bears below 0.6400

NZD/USD pares intraday gains around 0.6375 during early Tuesday as options market signals put a floor under the Kiwi prices even if the US Dollar strength probe the pair buyers.

That said, one-month risk reversal (RR) of the NZD/USD pair, a ratio of call options versus put options, prints a +0.105 figure at the latest. With this, the Daily RR prints a three-day winning streak while posting the highest levels since December 30, 2022.

It should be noted that the NZD/USD pair’s weekly RR jumped the most in one month by the end of Friday, with a +0.120 figure, and snapped the two-week downtrend before printing the consecutive second weekly positive figure of +0.105 RR number.

On the other hand, the recent swing in the Federal Reserve (Fed) policymakers’ comments, favoring aggressive rate hikes of late, seem to join the easing optimism surrounding China to weigh on the NZD/USD prices. However, a comparatively more hawkish bias for the Reserve Bank of New Zealand (RBNZ) keeps the pair buyers hopeful.

Also read: NZD/USD retreats towards 0.6350 with eyes on Fed Chair Powell