Kiwi Goes Offered Amid Softer Commodity Complex

NZD/USD lost ground Monday as the kiwi dollar faltered alongside its commodity-tied peers, while the greenback gained on safe-haven demand.

• Weak activity data released out of China applied pressure to the Antipodean currencies and was followed by a miss in U.S. Empire M'fing Index, which further dented risk sentiment.
• The commodity complex was weaker, with the aggregate Bloomberg Commodity Index down ~1.5% on the day. However, equities traded on a firmer footing post-Asia, while the VIX index gave back the bulk of its early advance.
• NZD/USD last trades at $0.6363, down 4 pips on the day. Bears keep an eye on $0.6192, which limited losses on Jul 27. Bulls look for a recoil above Aug 12 high of $0.6468.
• CoreLogic said the proportion of residential properties being sold at a loss increased for the second consecutive quarter, suggesting that the market has reached a "turning point."
• Reminder that the RBNZ will announce its monetary policy review this Wednesday (our preview is forthcoming) and is widely expected to raise the OCR by a further 50bp. The OIS strip fully prices such a scenario.