AUD/USD risk reversals continue retracing AUD bearish bias

• AUD/USD risk reversals show falling demand for AUD puts (bearish bias). 
• Add credence to upside move in AUD/USD. 

The AUD/USD one-month 25 delta risk reversals (AUD1MRR) are being paid at 0.625 AUD puts vs. 1.225 AUD puts seen on Feb. 9. The drop in the implied volatility premium for AUD puts indicates investors no longer fear a deeper sell-off in the AUD/USD spot. 

As of writing, the AUD/USD is trading at a 13-day high of 0.7870. The currency pair has taken out the descending trendline (drawn from the Jan. 31 high and Feb. 16 high) and looks set to test 50-day moving average located at 0.7895. 

AUD1MRR