Kiwi Slips After Covid Case Visits Wellington, Greenback Digests Fedspeak

The kiwi went offered after New Zealand implemented restrictions in Wellington and halted a quarantine-free travel corridor with New South Wales. The decision came after a positive Covid-19 case from Sydney visited New Zealand's capital over the weekend. NZD/USD briefly showed below the round figure of $0.7000.

• The greenback caught a bid, leading gains in G10 FX space. Regional participants assessed yesterday's round of Fedspeak, with Powell & Co. noting that the recent rise in inflation will likely prove transitory and that "we will not raise interest rates pre-emptively".
• USD/JPY showed at levels last seen on Apr 1, but trimmed gains thereafter. The rate operates in close proximity to its Mar 31 cycle high/psychological resistance at Y110.97/111.00.
• The PBOC set its USD/CNY mid-point at CNY6.4621, 13 pips shy of sell-side estimate. USD/CNH crept higher, extending its current winning streak to 9 days in a row.
• U.S. new home sales, Canadian retail sales and a slew of global m'fing PMIs take focus on the data front. Central bank speaker slate includes Fed's Bowman, Bostic & Rosengren as well as ECB's Lagarde & de Guindos.