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Forex - AUD/USD, AUD/SGD Flows: AUD weighed by huge China deficit, eye 1.0500 Options


 00:48 (GMT) 12 Mar

  [Forex Flows]

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AUD/USD, AUD/SGD Flows: AUD weighed by huge China deficit, eye 1.0500 Options (BBUC4501)

AUD/USD, AUD/Crosses under further waves of selling after the huge China trade deficit, and some risk aversion given concerns over ISDA determination of Greek swap as Credit event (Default).

AUD/USD hit day lows of 1.0536, down from NY close of 1.0577. Eye test of 7-week lows of 1.0508, and then the huge 1.0500 option barriers. 1-m Vols levels last seen around 11.1075%, vs 10.8650%. Levels at 10.860/11.355%, r/r -1.850/-1.500%. 3-m Vols levels 11.725/12.225%, r/r -3.325/-2.975% - favouring AUD puts - eye more downside. AUD/USD option barriers at 1.0500.

But hearing talks of huge Asian accounts, China, Sovereigns, options bids ahead of 1.0500 barriers. Bids 1.0505-15. Good selling from US funds, Japanese names and Europeans. Stoploss. AUD/SGD under pressure at 1.3255-60, it hit around 1-half month lows around 1.3235-45, lowest level since Jan 25 1.3218. Eye break of key 1.3000 - as AUD weighed by concerns over slowing China and also ongoing eurozone concerns. And recent spate of weak Aussie data - trade deficit, weaker GDP of +0.4%, and employment fall. AUD eye 1.0350, AUD/SGD 1.2950. AUD/JPY at 86.70-75, eye test of 85.00. WL


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