Kiwi Starts The Week On The Back Foot

NZD/USD went offered as the new week began with a sense of caution. The rate ticked away from lows later on Monday, but failed to recoup neutral levels. The kiwi was the worst G10 performer amid talk of some leveraged accounts reloading NZD shorts.

• The average residential property asking price on Trade Me rose 15.6% Y/Y to NZ$815,700 in April, a new all-time high, with 12/15 regions having a record-breaking month. Nonetheless, Trade Me said that "some signs of slowing" are emerging" and "if we see demand and supply continue to tail off, we might also see prices decelerate, but this will take some time after such a long period of growth." Separately, higher-frequency data from Barfoot & Thompson showed a continued decline in activity in its Auckland auction rooms, albeit this is likely linked to seasonal factors.
• New Zealand's quarterly PPI comes out Wednesday, with credit card spending due Friday. Meanwhile, on Thursday FinMin Robertson will deliver the 2021 Budget.
• NZD/USD last sits at $0.7212, 8 pips better off on the day. Above May 14 high of $0.7256 would allow bulls to set their sights on May 10/Mar 2 highs of $0.7305/07. On the downside, focus falls on the 50-DMA/May 13 low at $0.0.7141/35 and a break here would expose May 4 low of $0.7116.