Kiwi Firms In Tandem With Oil, Robertson Sees Greater Optionality In 2021 Budget

NZD/USD trades a touch higher in early trade this week, last +9 pips at $0.7287. The news about a cyberattack on a critical U.S. fuel pipeline have bled into commodity markets, likely lending some support to commodity-tied FX. There has been little in the way of local catalysts to move the rate early doors.

• NZ FinMin Robertson delivered a pre-budget speech this morning, but didn't provide much in terms of fresh insight. Robertson sought to convey the message that the gov't has more fiscal room than expected, but also retains the capacity to keep a lid on debt. The official didn't provide concrete numbers, while he called the 2021 Budget, due May 20, a "recovery and wellbeing budget."
• QV data showed that home prices reached fresh highs in Apr, as the average NZ house changed hands for just north of $900,000.
• New Zealand's card spending comes out Tuesday, food price index is due Thursday, while BusinessNZ M'fing PMI hits the wires Friday.
• The rate printed best levels since the early days of March before the end of last week, but it failed to take out the $0.7300 mark. A break above last Friday's/Mar 2 highs of $0.7299/0.7307 would open up Feb 25 cycle high of $0.7465. Conversely, a fall through May 4 low of $0.7116 would signal that bears might be taking control.