NZD/USD: Bearish bias in the options market strengthens ahead of the Fed

• NZD/USD risk reversals show implied vol premium for NZD puts at 3.5-week high. 
• Bearish bias strengthens ahead of the Fed meeting. 

Kiwi's retreat from 0.7355 to 0.7210 has revived interest in the NZD puts. The one-month 25 delta risk reversals (NZD1MRR) show the implied volatility premium for NZD puts at 0.90 - the highest level since Feb. 22. 

Cleary, investors are seeking downside protection on rising fears that Fed will likely revise higher its dot plot to four 2018 rate hikes at the forthcoming meeting.

NZD1MRR