Gains As China “Refines” COVID Rules

NZD/USD prints just above $0.6110, slightly higher from last week's closing levels, in a muted start to the week's trade.

• The pair gave up some of its post US CPI gains in early trading on Friday before finding support around the $0.5990 level. Late in the Asian session news hit the wires that China was "refining its COVID rules", cutting quarantine time for inbound travelers and close contacts. The pair then rallied ~2.4% over the course of the day, printing a high of $0.6130 late in the NY session.
• Risk appetite in the region could also be further supported today, as more details emerged over the weekend around China's16-point rescue plan for the real estate market. This plan could dovetail a less stringent COVID stance and boost the economy after two years of ZCS.
• Bulls will now look to target the September high at $0.6161 then the 200-day EMA at $0.6237. Bears will look to the 100-day EMA at $0.6013 to re-establish the downtrend.
• Earlier the services PSI rose to 57.4, the prior was revised higher to 55.9.
• For the rest of the week the domestic data calendar is light, 3Q PPI on Thursday provides the main point of interest. House sales data due out early tomorrow could also be of interest.