Landslide

NZD/USD sits +11 pips at $0.6613 after topping out at $0.6622 in early trade as the ruling Labour Party won majority of seats in New Zealand's parliament. Labour performed better than expected, capturing 49% of the vote, while the main opposition National Party took a disappointing 27%. Although PM Ardern's party can rule alone, she hinted that she wants to talk to the Green Party, but didn't reveal any details on the nature of their potential collaboration. The Labour Party's caucus convenes today and PM Ardern plans to form the new cabinet within 2-3 weeks.

• New Zealand's PSI improved to 50.3 from 47.2, entering expansion as Auckland lockdown measures were lifted.
• Bulls look for a move through Oct 14 high of $0.6682 before targeting Sep 18 high of $0.6798. Conversely, a dip through the 100-DMA/Oct 15 low at $0.6585/76 would turn focus to Oct 8 low of $0.6547.
• RBNZ Asst Gov Hawkesby speaks Tuesday, while New Zealand's credit card spending comes out Wednesday, with CPI due Friday. Today's GDP & activity data out of China will also provide interest.