Maintaining Outperformance Trend, All Eyes On RBNZ This Week

NZD/USD prints $0.6155, up ~0.10% in early trade, having printed a high at $0.6176 not long after the open.

• The pair is firmer this morning as the Fed's Bostic said on Saturday that he favors slowing the pace of interest rate increases with no more than 1 percentage point of additional hikes to try and ensure a soft landing for the US economy.
• Beijing's most populous district urged residents to stay at home on Monday. This extends a request from the weekend as COVID case numbers rise, the city recorded its first Covid death since May. Yesterday national new case numbers held steady near April peaks.
• OIS markets are pricing ~65 bps hike in the OCR at Wednesday's RBNZ meeting, with the terminal rate peaking at 5.13%.
• Technically, bulls look to target the 200-day EMA at $0.6238. A break through there would open the way to the high from 12 Aug at $0.6468. Bears need to breach the 100-day EMA at $0.6026 to re-establish the downtrend.
• Today we have October Credit Card Spending on the wires. Further out on Tuesday, the Oct Trade Balance, and on Wednesday the RBNZ official cash rate with the Bloomberg survey expecting a 75 bps hike in the OCR.