Kiwi Gains For First Time In Six Days

NZD/USD snapped a six-day losing streak Tuesday as the greenback went offered across the board. The kiwi may have drawn some additional support from firmer commodity prices.

• Weakness in the U.S. dollar was driven by below-forecast flash S&P Global PMI readings, with the services gauge falling considerably off the mark. Elsewhere, monthly data showed that new home sales fell more than expected.
• The commodity complex was resilient, albeit BBG Commodity Index eased off highs in NY hours.
• Equity sentiment was fragile, benchmark stock indices struggled and the VIX edged higher.
• NZD/USD trades at $0.6213 as we type, with bulls looking for renewed gains towards Aug 12 high of $0.6468. Conversely, the initial bearish target is provided by the 76.4% retracement of the Jul - Aug rally at $0.6157, which limited losses on Monday.
• The RBNZ is unlikely to announce any update on its estimate where the neutral level of the OCR sits by the year-end, Asst Gov Karen Silk told interest.co.nz. Dep Gov Christian Hawkesby earlier suggested hat the Reserve Bank had "talked about a range of 2% to 3%."
• The domestic data docket is empty today. Retail sales will cross the wires tomorrow, with ANZ Consumer Confidence coming up Friday.
• Elsewhere, RBNZ Gov Orr will speak from Jackson Hole on Friday.