Kiwi Defies Headwinds, 50-DMA Gives Way

NZD/USD ground higher at the start to the week, with broad-based greenback weakness facilitating the move. The kiwi showed resilience amidst a generally unfavourable environment.

• The pair shrugged off simmering Sino-U.S. tensions and questionable risk backdrop. Equity benchmarks post-Asia slipped, while the VIX index crept higher. The commodity space was also weaker, with the aggregate BBG Commodity Index heading lower.
• Yesterday's upswing allowed NZD/USD to close above its 50-DMA for the first time since April. The rate last deals +6 pips at $0.6337, with bulls looking for further gains past Jun 16 high of $0.6396. Bears need a retreat under Jul 14 low of $0.6061 to regain the upper hand.
• RBNZ Gov Orr remains in the crosshairs of former central bank insiders. Ex-staffer Geof Mortlock renewed his criticism of the incumbent Governor in an open letter to FinMin Robertson, accusing the Reserve Bank of excessive preoccupation with "irrelevant" issues, lack of transparency and accountability.
• The latest report from Barfoot & Thompson showed that the average and median selling prices of properties in Auckland continued to fall in July, albeit the pace of their decline failed to match that of sales numbers. There are more insights coming up on that front, CoreLogic will publish its nationwide House Price Index tomorrow.
• The key data release this week is Q2 labour force survey, which will also cross the wires tomorrow. It will be one of the main data inputs to RBNZ deliberations before the release of this month's Monetary Policy Statement.