Keeping an eye on the FX options market is one of the things we do at ForexLive and we’re always trying to do a better job.
Traders have better access to trading data all the time and some trades today in AUD/JPY options caught my eye.
$30 billion in notional AUD/JPY trades went through today just after 10 am ET (1400 GMT). The options all expire tomorrow or Wednesday and include $15B of 94.90 puts and $15B of 95.00 calls.
DTCC data
The trade was made with AUD/JPY at 94.90.
AUDJPY intraday
The trade was likely made to lock in a rate for some kind of corporate deal. If not, it could also be a huge bet on volatility in the pair (better that a move in one direction or the other outstrips the cost of the premium).
What does it mean? It could help to lock the pair close to that range until the cut on Wednesday. It’s certainly something worth watching.
