NZD/USD kicked off Monday on the defensive.....>

KIWI: NZD/USD kicked off Monday on the defensive as investors shied away from

high-beta FX, alarmed by weekend news flow on the Covid-19 epidemic. New Zealand

hasn't confirmed any cases yet, but soaring counts in such countries as Italy or

South Korea inspired risk aversion. That being said, NZD/USD recouped the bulk

of initial losses as tanking U.S. 10-Year Tsy yields sapped some strength from

the greenback. Friday's extremes remained intact, with the rate finishing

slightly shy of the prior intraday close.

- NZ PM Ardern said Monday that the ban on inbound travel from mainland China

will be extended by a further 8 days, to be reviewed every 48 hours. FinMin

Robertson added that the gov't is planning for different scenarios and would

deploy fiscal measures if one of the worst scenarios materialises.

- NZD/USD last seen at $0.6344, marginally higher but still near multi-month

lows. A break below Friday's low of $0.6303 would draw attention to the Oct 16

low of $0.6241. Bulls remain focused on Friday's peak at $0.6357. Above there

would expose the Feb 20 high of $0.6395.

- NZ trade balance & ANZ biz. conf. hit on Thurs, ANZ cons. conf. is due Friday.