NZD/USD risk reversals - Bearish bets rise

• Demand for NZD puts (bearish bets) continues to rise.
• Kiwi could see a sustained move below 38.2% Fib.

The NZD/USD one month 25 delta risk reversals continue to slide, indicating rising demand for NZD bearish bets (put options).

The risk reversals gauge fell to -1.40 - the lowest level since Nov. 28 vs. -0.975 on Monday. The decline indicates investors do not see NZD/USD regain bid tone despite its defense of 0.7185 (38.2% Fib R of Nov-Jan rally).

Also, about two weeks ago, the risk reversals stood at -0.30. Clearly, the options market is biased lower.