Kiwi Extends Losses, NZ Housing Market Continues To Cool

NZD/USD traded with a bearish bias for the second consecutive day Wednesday, as the greenback managed to stay afloat.

• Marginal beats in China's official PMI readings and the PBOC's pushback against yuan depreciation via its mid-point fix may have provided some incremental support to the kiwi, shielding it from deeper losses.
• The BBDXY index gave away its earlier gains on the release of below-forecast ADP employment data, even as MNI Chicago PMI topped expectations. The index was little changed come the end of play.
• Equity sentiment remained negative post-Asia, with most benchmarks losing ground, even as the VIX index slipped. The commodity complex softened, with the aggregate Bloomberg index printing its worst levels since Aug 19.
• The latest CoreLogic House Price Index (released at 18:00 BST/05:00 NZST) showed that the average property value declined for the fifth consecutive month and dropped below NZ$1mn for the first time since Nov 2021.
• NZD/USD trades flat at $0.6119. A dip through Aug 29 low/round figure of $0.6102/00 would expose Jul 14 cycle low of $0.6061. Bulls would be pleased by a rebound above the 50-DMA, which kicks in at $0.6234.
• New Zealand's terms of trade will cross the wires shortly. China's Caixin M'fing PMI will take focus later in the day.