NZD/USD holds on to the previous day’s bearish bias around the lowest levels since May 2020, sellers flirt with the 0.6100 round figure during Tuesday’s Asian session.

In doing so, the Kiwi pair justifies the options market pessimism amid broad US dollar strength.

That said, the one-month Risk Reversal (RR) of the NZD/USD pair, the key options market gauge, marked the lowest level since July 01 the previous day. It’s worth noting that the RR is different between the call options and the put options and hence indicates the market’s bias.

It’s worth noting that the latest NZD/USD RR also snaps a three-day rebound with -0.140 figures.

The bearish bias over the Kiwi pair could be linked to the fears of recession and the broad US dollar strength. However, bears should remain cautious ahead of Wednesday’s monetary policy decision of the Reserve Bank of New Zealand (RBNZ).

Also read: NZD/USD bears attack 0.6100 at two-year low amid inflation/recession fears, RBNZ eyed