The RBNZ released a statement outlining their intention to step up efforts to reign the roaring housing market by tightening mortgage lending standards. The statement added that the MPC "needs to think about when and how we would return interest rates to more normal levels, which are neither unnecessarily giving the economy a push forward nor holding it back," while the "next opportunity to publicly address this issue is the 18 August Monetary Policy Statement". The Reserve Bank's intensified crackdown on property prices and hawkish rhetoric provided a boost to OCR hike bets, with the OIS strip currently pricing an ~84% chance of a 25bp hike at the August meeting, up from ~65% yesterday. Hawkish RBNZ repricing pushed NZD to the top of the G10 scoreboard in early Asia-Pac trade.

• AUD caught up with its Antipodean cousin, when the RBA defied market consensus and chose to stick with its tapering plan, despite the ongoing resurgence of Covid-19 in Australia. AUD/NZD clawed back its earlier losses in a single bounce following RBA decision announcement, while NZD extended gains vs. other major currencies as spillover from across the Tasman gave it a shot in the arm.
• USD and CAD went offered across the board despite the absence of notable local headline catalysts. Canadian markets were shut Monday in observance of a public holiday.
• Spot USD/CNH was rangebound, with an in-line PBOC fix providing no material impetus.
• U.S. factory orders & final durable goods orders headline the global data docket going forward, while Fed's Bowman will speak at a Fed conference.