AUD/USD puts in demand as the pair trades below 61.8% Fib

• Risk reversals show a rise in implied vols premium of AUD puts.

The AUD/USD pair fell below 0.7744 - 61.8 percent Fibonacci retracement of  Dec-Jan rally. The three-day drop seems to have revived demand for the AUD puts (bearish bets).

As of writing, the one-month 25 delta risk reversals are being paid at 0.80 AUD puts vs. 0.65 AUD puts on Feb. 27. The rise in the implied volatility premium of the AUD puts (bearish bets) indicates the investors are expecting a deeper sell-off in the spot.