Weakens As Commodity FX Underperforms, RBNZ Inflation Expectations Out Today

NZD/USD has fallen around 0.50% for Tuesday's session, the third worst performer in the G10 space (after NOK and AUD). Commodity FX generally faltered through the course of the session, although the USD recorded gains against all of the G10 currencies. NZD/USD currencies tracks at 0.5935, slightly up from post Asia close lows near 0.5910.

• Current spot levels are very close to the 50-day EMA (near 0.5930), while the 20-day sits just under 0.5900. On the topside the 100-day is near 0.5990, with the recent NZD rally topping out just above 0.6000.
• Cross asset moves were mixed in EU/US trade on Tuesday. US yields mostly pulled lower, although more so at the back end (10yr yield at 4.57% -7.5bps), despite generally hawkish Fed speak. Equity markets were once again mixed, negative trends in EU markets, but US markets firmed, led by the Nasdaq (+0.90%).
• Commodity indices were down, the aggregate Bloomberg index off 1.89%, the metals -1.04%. Oil was particularly weak, Brent off 4%. Global demand concerns were cited as a headwind, although China imports surprised on the upside yesterday (albeit with mixed commodity import volume figures). China exports were weaker though, which may raise fears of broader global demand.
• Today on the data front RBNZ inflation expectations, for Q3 the prior 2yr read was 2.83%.