SINGAPORE, July 24 Reuters Commodity currencies slid to multiweek lows on Wednesday on the back of weakening raw material prices with the heaviest selling against the yen, which surged to its highest in two months as short sellers bailed out ahead of a central bank meeting.

The Aussie dollar fell 0.5 and at 0.6686 was only 10 pips from chart support levels. It fell more than 1 to 101.79 yen and is down nearly 7 in two weeks.

The New Zealand dollar fell 0.6 to a near threemonth low of 0.5914 while the Canadian dollar made a threemonth trough of C1.38 per dollar.

The moves tracked falling prices for industrial metals such as iron ore and copper, which made threeandahalfmonth lows on a gloomy outlook for Chinese demand, and risk aversion in stock markets following some disappointing U.S. earnings.

We39;re seeing softer demand in China and Asia in general and the kiwi and Aussie just being pulled down, said Jason Wong, senior markets strategist at BNZ in Wellington.

Markets are also pricing in an 84 chance of a 25 basis point rate cut in Canada later on Wednesday.

The euro and sterling were a little steadier, falling only marginally to touch twoweek lows of 1.0842 and 1.2884, respectively, as traders waited for purchasing managers39; index figures. The numbers will test support for bets on rate cuts over coming months.

The risk of a rate hike for Japan and recent rounds of suspected currency intervention have speculators rushing to close what had been profitable…