NZ Officials To Provide Update On Covid Situation

NZD/USD managed to eke out some modest gains Monday, charting an inside day candlestick. The rate dipped into the WMR fix after Senate Majority Leader Schumer suggested that the passage of the Covid-19 relief package could take until mid-March. NZD/USD bounced off its post-WMR intraday low of $0.7171 and ground back above neutral levels later on.

• New Zealand's Services PMI improved to 49.2 from 46.7 last month, falling short of returning into expansion. BNZ commented that "the PSI and PMI painted a picture of GDP struggling to expand."
• NZ health off'ls continue to analyse the first community transmission of Covid-19 in two months. The patient contracted the South African variant of the virus and 14 of her close contacts have returned negative tests, with 3 more pending.
• The Ministry of Health will hold a briefing at 13:00 local time, with a post-Cabinet update from PM Ardern & Minister for Covid-19 Response Hipkins due next at 15:00.
• A market holiday in Australia will sap liquidity in Antipodean crosses today.
• NZD/USD trades at $0.7197, marginally shy of neutral levels. A break under the 50-DMA at $0.7109 would clear the way to Jan 18 low of $0.7096. On the topside, gains past Jan 13 & 14 highs of $0.7240 would expose Jan 6 high of $0.7315.
• New Zealand's latest trade report hits the wires on Thursday, with ANZ Consumer Confidence coming up on Friday.