NZD/USD To Fresh Highs Above 0.6100, Lower US Yields Hurt Broader USD Sentiment

NZD/USD mostly stayed on the front foot post the Asia close on Monday. The pair got to fresh highs of 0.6108 late in NY trade, we sit slightly lower now, last near 0.6100. This is still 0.40% higher for Monday's session, the third best performer in the G10 space, as the USD remained on the back foot against most of the majors.

• We are at fresh highs since the first half of August, while also above the simple 200-day MA (0.6092). Just near 0.6170 lies the 61.8% Fib level from mid July highs to late Oct lows in the pair. On the downside, the 20 and 100 day EMAs are near 0.5990.
• The USD was weighed by a pull back in US yields, the 10yr off 8bps to 4.385%. This followed core EU moves, while US 2y and 5y supply was digested relatively smoothly.
• Equity sentiment was generally softer, with modest losses in EU and US markets. The headline BBG commodity index continued to lose ground, down 0.44%, as oil prices fell further. The metals index loss 0.71%, but commodity FX remained firm.
• The local data calendar is empty today, as tomorrow's RBNZ decision comes into view. We have AU retail sales and RBA's Bullock speaking today, so could see some spill over to NZD from AUD shifts.