Holds Sub 0.6000, As Commodity FX Underperform

NZD/USD fell 0.90% for Thursday's session. The pair tracks in the 0.5965/70 region in early Friday dealing. Outside of yen gains, the USD was mostly stronger against the G10 currencies, with commodity FX seeing the largest losses. Post Asia-close lows for NZD came late in NY trade, near 0.5960, so not too far from current levels. Moves above 0.6000 drew selling interest.

• Commodity FX was weighed by the noticeable drop in oil prices (down 4.5% for Brent), as concerns of a tepid demand outlook amid higher US jobless claims, and rising stocks, piled pressure on prices during US trading hours.
• The spot aggregate Bloomberg commodity index fell just over 1.5%, the metals index lost 1.12%. Some carry over from yesterday's drop in China house prices also likely weighed on sentiment in the space.
• The NZD saw little benefit from lower US yields, which largely reversed Wednesday's gains. The 10yr is back to 4.44% amid generally softer data outcomes in the US on Thursday. US equity markets posted modest gains for the session; EU markets fell.
• On the data front today we have Q3 PPI input and output prices. There is no consensus estimate, the prior output PPI Q/Q was 0.2%.