AUD/USD defends bears around 0.6715 heading into Thursday’s European session. In doing so, the Aussie pair braces for the weekly loss while parting ways from the previous fortnight’s optimism.

While the risk-aversion and fears of downbeat economics from Australia, as well as China, keeps the AUD/USD bears hopeful, the options market disagrees with the bearish bias.

That said, the one-month risk reversal (RR) for the AUD/USD pair, the ratio between call and put premiums, prints the biggest daily gains in three by flashing 0.120 numbers at the latest, per options data from Reuters. In doing so, the weekly RR also remains firmer and prints the winning streak for the third consecutive time, 0.160 by the press time.

It’s worth noting that the market’s latest moves could also be linked to the preparations ahead of the next week’s Federal Open Market Committee (FOMC) meeting.

Also read: AUD/USD remains depressed below 0.6750 after Australia Trade Balance, RBA Bulletin