US Consumer Data Weighs on Dollar, Boosts Kiwi

The US dollar weakened against major currencies after softer-than-expected consumer data in the United States. Retail sales fell 0.6% month-over-month, and the Michigan consumer sentiment index dropped to 51.0 in August.

The initial dip in Treasury yields was quickly reversed, with 10-year yields ending near 4.70%. European government bond yields also moved higher, led by the long end, which reached multi-decade highs.

The US dollar's decline against G10 currencies was modest, with the NZD/USD rising to just below 0.5900.

Australian 10-year bond futures imply yields around 5bp higher since the local close, suggesting an upward bias for New Zealand rates on the open.