Kiwi Ticks Away From Friday's Low

NZD/USD has extended its slow move away from Friday's low of $0.7116, which coincides with the low print of May 4. Market holidays in China and across the Tasman will thin out liquidity today. The rate last trades at $0.7137, 7 pips higher on the day.

• The kiwi has shown little reaction to the release of the latest PSI, which fell to 56.1 in May from 61.2 prior, showing that the expansion in the services sector slowed from a record pace. BNZ commented that the index still sits above its long-term average of 53.8.
• The local docket this week is headlined by Q1 GDP, due Thursday. Elsewhere, food price index comes out Tuesday, while BoP current account balance hits Wednesday.
• Losses past Jun 11/May 4 lows of $0.7116, a key layer of support, would allow bears to take aim at the 200-DMA, which kicks in at $0.7035. Bulls see Jun 7 high of $0.7243 as their initial target.