NZD: Finding A Base?

Bloomberg reported that US oil inventories fell 1.455mn barrels last week after 640k the week before, according to people familiar with the API data. Stocks at Cushing rose 1.6mn. Gasoline was down 1.25mm, while distillate rose 1.1mn and distillate.  The official EIA data is released later today.

Headlines have crossed from a Fox News interview with US Commerce Secretary Howard Lutnick. They hint at some form of relief from the recently announced tariffs on Mexico and Canada, although more details are likely needed. 

Reuters noted: "U.S. Commerce Secretary Howard Lutnick told Fox Business on Tuesday that President Donald Trump will reach a middle ground with Canada and Mexico on tariffs and an announcement to that effect was expected on Wednesday." 

BBG added: "*LUTNICK SAYS TRUMP CONSIDERING RELIEF FOR USMCA-COMPLIANT GOODS" - BBG, along with "*LUTNICK: TRUMP MAY ROLL BACK CANADA, MEXICO TARIFFS TOMORROW" - BBG. 

• Both CAD and MXN have rallied against the USD, with USD/CAD back sub 1.4400, while USD/MXN got back under 20.50, but sits slightly higher now. US yields have risen to session highs, the 10yr back close to 4.25%. We were near 4.20% as these headlines started to cross.