Labour Slips In Polls, Jobs Data Headlines NZ Docket This Week

The kiwi has shown little reaction to a slight miss in China's official manufacturing PMI reported over the weekend and the latest domestic political poll, with all eyes this week set to be on Tuesday's labour market data. NZD/USD last trades flat at $0.6974 and bears would be pleased by a fall through Jul 28 low of $0.6902, towards Jul 20 cycle low of $6881. Meanwhile, a jump above Jul 30 high of $0.7021 would give bulls a green light for targeting Jul 15 high of $0.7045.

• Support for the ruling Labour Party shrank by almost 10pp to 43% in the latest Newshub-Reid poll, but Jacinda Ardern remained the nation's preferred PM, by a wide margin. Commenting on these results, Ardern suggested that the gov't is preparing changes to border measures to alleviate labour shortages in agriculture and horticulture sectors.
• Realestate.co.nz (largest NZ property listing website) said that residential property asking prices continued to increase in July (albeit at a sluggish pace) as new listings plunged 11% Y/Y. Worth noting that last year's winter season saw heightened real estate activity, as the government relaxed initial lockdown restrictions.
• Focus in New Zealand turns to CoreLogic House Price Index (Tuesday) and quarterly labour market report (Wednesday). The jobs report will be closely watched, as it may move the needle for the RBNZ's monetary policy meeting due later this month. NZD/USD overnight implied volatility (last at 11.62%) jumped this morning, but still sits below the mid-point of this year's range.