NZD/USD ignores downbeat options market signals to print three-day uptrend near 0.6100

NZD/USD picks up bids to 0.6105 as it extends Friday’s corrective pullback from the seven-week low to print a three-day uptrend during Tuesday’s Asian session. In doing so, the Loonie pair cheers a pullback in the US Dollar Index (DXY) while ignoring downbeat signals from the options market.

That said, the one-month NZD/USD risk reversal (RR), a difference between the call options and the put options, not only printed the first daily fall after a two-week rebound but also reversed Friday’s upbeat RR print while flashing a -0.040 figure for Monday. However, the US market holiday at the week’s start and the monetary policy meeting of the Reserve Bank of Australia (RBA) probe the Kiwi pair buyers of late.

Also read: Reserve Bank of Australia Preview: Is the central bank ready to slow the tightening pace?

Moving on, updates surrounding the US-China relations, the energy crisis in Europe and the ISM Services PMI for August, expected 55.5 versus 56.7 prior, will be crucial for the pair traders to watch for fresh impulse.

Given the full markets’ return, the NZD/USD prices may witness more volatility and hence traders should remain cautious.

Also read: ISM Services PMI Preview: High bar to help dollar bears pass through and take over