Kiwi Looks Past Domestic Data After Coming Under Pressure From PBoC Action

NZD/USD started on a softer footing Monday, reacting to the well-documented PBoC decision to cut yuan shorting costs, and generally traded sideways through the rest of the day. A Columbus Day holiday in the U.S. limited activity, while participants pondered familiar risk headlines. The rate finished just shy of 20 pips lower on the day.

• We've seen some NZ data this morning. REINZ house sales jumped 37.1% Y/Y in Sep after a 24.8% increase in Aug. Retail card spending recovered and rose 5.4% M/M after falling 7.9% in Aug. In addition, per Paymark's data spending on credit and debit cards at retail and non-retail stores in the week ended Oct 11 increased 0.2% Y/Y. Finally, New Zealand's food price index declined 1.0% M/M in Sep after edging 0.7% higher in Aug.
• NZD/USD holds steady at $0.6647 as we type. A fall through the 100-DMA at $0.6569 & Oct 8 low of $0.6547 would bring Sep 24 low of $0.6512 into play. Bulls look for an attack at Sep 18 cycle high of $0.6798.
• Focus moves to NZ BusinessNZ M'fing PMI, due Friday.