NZD/USD stays below 0.6800 despite bullish bias of options market

One-month risk reversal (RR) of NZD/USD, a gauge of calls to puts, rose the most since December 07, up for the second consecutive day to recently around +0.113 per the data source Reuters.

It’s worth noting that the weekly RR braces for the third positive print, the longest advances since late May, which in turn suggests that the NZD/USD buyers are up for a short-covering should the fundamentals help.

That said, New Zealand’s (NZ) Q3 GDP recently eased below -4.5% expectations to -3.7% on QoQ whereas the yearly growth figures came in -0.3% versus -1.6% forecast and +17.9% revised prior.

Even so, NZD/USD prices remain pressured around the yearly low, down 0.23% near 0.6765 at the latest, as market sentiment dwindles between the key central bank monetary policy decisions.

Having witnessed a surprise rejection of the Fed’s hawkish tone, global investors are up for battling the European Central Bank (ECB) and the Bank of England (BOE) decisions by the press time.

Read: NZD/USD Price Analysis: Pokes falling wedge resistance on firmer NZ Q3 GDP