Kiwi Extends Losses, FinMin Robertson Delivers Pre-Budget Speech

NZD/USD traded on a softer footing on Monday, extending its losing streak to eight consecutive days and lodging worst levels in almost two years. The pair was weighed on by disappointing Chinese PMI data from over the weekend and broader demand for the greenback, with positioning ahead of this week's FOMC meeting in play.

• The rate deals at $0.6432 and is headed for the $0.6385-77 area, which hosts price congestion from Jun 2020. On the flip side, a rebound above the $0.6500 mark would bring Jan 28 low of $0.6530 into play.
• In his pre-Budget speech this morning, FinMin Robertson signalled that the government will introduce a new borrowing limit, while focusing on health and climate change as the key spending areas. He also forecast a later return to a budget surplus than predicted in his pre-Christmas update, as it's not expected to happen for another three years. The Budget will be delivered on May 19.
• Upcoming local data highlights include building permits (today) as well as the closely watched quarterly labour market report (Wednesday).
• Separately, the RBNZ will publish its biannual Financial Stability Report on Wednesday, which will be followed by a press conference and parliamentary testimony.
• In the meantime, today's monetary policy decision from the RBA may result in some trans-Tasman spillover.