Kiwi Starts Week On Front Foot, Prepares For RBNZ MPR

NZD/USD starts the week on a firmer footing, with the kiwi sitting atop the G10 pile. The rate last operates +16 pips at $0.7002, building on its dynamic recovery seen after Asia hours last Friday.

• Should the rate cross above Jul 7 high of $0.7061, bulls could take aim at $0.7105, which capped gains on Jul 6. On the flip side, the key near-term support has been defined at $0.6923, which limited losses on Jun 18/Jul 9.
• Worth mentioning that NZD/USD 1-week implied volatility eased from a three-and-a-half month high of 11.88% last Friday and sits at 10.26% as we type.
• In their latest update, NZIER Monetary Policy Shadow Board advocated tightening policy within the coming year, with "many" seeing "a tightening in monetary policy at the upcoming July meeting as appropriate."
• PM Ardern said this morning that the current strict border controls is not a "forever scenario," but reopening will be tied to the progress in vaccinations. Elsewhere, New Zealand will allow Kiwis stranded in NSW who urgently need to come back to book repatriation flights.
• New Zealand's card spending data will be published shortly. Later in the week, focus turns to REINZ House Sales & food price index (Tuesday), RBNZ MonPol decision (Wednesday) as well as BusinessNZ M'fing PMI & CPI (Friday).