Kiwi Comes Under Pressure, Retail Sales On Tap

NZD/USD trended lower on Wednesday, oscillating in the process, as the kiwi landed at the bottom of the G10 pile. The rate had a bearish inside day.

• Equity sentiment was wobbly. U.S. benchmarks fluctuated to eke out some modest gains come the end of the day and the VIX index eased off. The commodity complex was slightly firmer.
• U.S. Tsy yields advanced in the London/NY crossover, lending support to the BBDXY index. The correlation broke down later in the day, as the dollar index dipped into the WMR fix.
• There was little in the way of NZ-specific catalysts to underpin the kiwi's weakness relative to all of its G10 peers.
• NZD/USD last seen at $0.6189, little changed on the day. Downside technical focus falls on the 76.4% retracement of the Jul - Aug rally at $0.6157, which limited losses on Monday. Below there opens the recent cyclical low of $0.6061. Bulls look for a rally towards $0.6468, the high print of Aug 12.
• New Zealand's retail sales ex inflation are expected to have grown 1.7% Q/Q in the second quarter after a 0.5% decline in the three months through end-March. Data will cross the wires shortly.
• Reminder that RBNZ Gov Orr will be interviewed tomorrow, while ANZ will publish its Consumer Confidence Index.