Kiwi Bounces Off Multi-Week Low

Monday was a day of two halves for NZD/USD, as the pair recouped its initial losses in the Europe/U.S. crossover.

• The greenback depreciated on the back of fresh demand for the EUR, as Germany pointed to a faster than planned progress on its storage targets, while EU's von der Leyen touted an intervention in the bloc's energy market.
• The risk-sensitive NZD/USD held gains despite negative equity sentiment, with benchmark indices trading in the red and the VIX creeping higher.
• On the other hand, the commodity complex firmed as the aggregate BCOM Index posted a decent rebound in the NY morning, despite notably softer European gas futures prices.
• NZD/USD last trades flat at $0.6153 after printing its worst levels in more than six weeks on Monday. Option skews shifted towards kiwi puts as 1-month risk reversal showed at its lowest point since Aug 3.
• From a technical perspective, renewed losses past yesterday's low/round figure of $0.6102/00 would bring Jul 14 cycle low of $0.6061 into view. Bulls look for a rally above the 50-DMA ($0.6241) before taking aim at Aug 12 high of $0.6468.
• New Zealand's building permits and ANZ Business Confidence are due Wednesday, with terms of trade coming up Thursday.