• Benchmark 1-month AUD/USD implied vol trades 7.35 — a new low since January's base at 7.2

• Post-pandemic low sits at 6.5, hit in December 2025 — that's the floor to watch

• FX options need realised vol to thrive — stubbornly absent, the whole complex is under pressure

• Past 1-month realised vol at 7.75 suggests implied vol looks cheap at current levels

• Daily delta hedging rewarding holders if vol can repeat last month's performance

• Related - FX options have already dialled back the NFP risk premium
AUD/USD FXO implied volatility


(Richard Pace is a Reuters market analyst. The views expressed are his own)