Kiwi Stable After Equity-Driven Jump, Local Markets Reopen

Spot NZD/USD oscillates around neutral levels as New Zealand financial markets re-open after the holiday-elongated weekend. The pair last sits at $0.6318, little changed on the day.

• The rate has entered consolidation mode after climbing on Friday as risk sentiment rebounded amid strong performance from the equity markets, in part aided by lower consumer inflation expectations in the U.S.
• From a technical perspective, bulls eye Jun 16 high of $0.6396 for initial resistance. If we get above there, focus would turn to $0.6576, which capped gains on Jun 3. Conversely, sales below Jun 22 low of $0.6244 would expose $0.6197, the low print of Jun 14 and a key near-term support.
• PM Ardern is en route to Europe, where she will try to seal a free-trade deal with the EU. FinMin Robertson said the government was "very optimistic" about the trade talks, even as details such as greater access to the European food market still need to be ironed out. Ardern will also take part in a key NATO summit this week.
• Local data are sparse at the start to the week but will move into a higher gear from Thursday, with the release of ANZ Business Confidence. Building permits, CoreLogic House Price Index and ANZ Consumer Confidence will be out on Friday.