Large option expiries at 1.1200 on AUDNZD having a say on the price action 22 April
Earlier I reported large expiries on AUDNZD and warned of the impact on core pairs. AUD 4.61bln rolling off at 1.1200 and my guess/experience tells me that one of the parties, probably the writer, is pushing the pair higher to make sure there's plenty of wriggle room to remain above nearer the time and protect their interest.
This is a huge amount for these pairs and as I've said on many occasions previously most cross pair cover will be tranched through the core pairs for best liquidity/execution.
AUDUSD has remained underpinned, albeit on the back foot on USD demand, but NZDUSD has been on a downward trajectory at pace.
I could be barking up the wrong tree but if anyone has a better theory please feel free to share it.
AUDNZD currently 1.1246, AUDUSD 0.7747, NZDUSD 0.6887
