NZD underperforms all of its G10 peers save....>

KIWI: NZD underperforms all of its G10 peers save NOK, in the wake of hawkish

comments from U.S. Tsy Sec Mnuchin & U.S. TR Lighthizer re: trade with China.

NZD/USD last seen at $0.6609, 5 pips lower on the day.

- Despite starting on the back foot on Monday, the NZD/USD advanced into the

London midnight, topping out just shy of $0.6630. Subsequent rhetorical

offensive from U.S. President Trump, who threatened with a fresh tariffs

directed at China, prompted the rate to erase earlier gains. However, it bounced

from lows around the Tokyo fix, again nearing $0.6630 in the European morning

and stuck to a ~10 pips range before remarks from Mnuchin & Lighthizer.

- In the wake of failures to break below $0.6600 yesterday & today, bears look

for a clean breach of the figure, which would expose the Apr 25 low of $0.6580.

Bulls look to the downtrend resistance, which kicks in at $0.6636.

- NZ focus today turns to the RBNZ's 2-year inflation expectation, while results

of the latest GDT auction, due in the London afternoon, will also provide

interest. Tomorrow, the RBNZ will deliver its MonPol decision, with a ~49%

chance of an OCR cut currently priced in, according to the BBG WIRP tool.