AUD/USD retreats from intraday high to 0.6700 amid early Friday morning in Europe. In doing so, the Aussie pair takes clues from the options market while defending the previous day’s bearish bias that portrayed the quote’s heaviest slump in 33 months.

That said, the one-month risk reversal (RR) of AUD/USD,  a gauge of calls to puts, drops the most in three weeks on daily basis, per data source Reuters. That said, the spread between call and put options prints -0.035 level by the press time.

The bearish bias in the options market could be linked to the broad pessimism surrounding global economic transition and central bankers’ moves. Also likely to have weighed on the sentiment could be the US-China tussles, not to forget the dragon nation’s lack of ability to convince traders of the economic recovery.

It should be noted, however, that the weekly RR remains firmer for the fourth consecutive time, to 0.130 at the latest, which in turn challenges the downside bias amid Friday’s sluggish start.

Also read: AUD/USD extends its recovery to near 0.6740 as risk off impulse eases, US PMI in focus