NZD/USD last sits -36 pips at $0.6210, with....>

KIWI: NZD/USD last sits -36 pips at $0.6210, with the kiwi underperforming all

of its G10 peers. The currency has been offered after China's official PMIs

released over the weekend plunged to record lows, while Australia confirmed its

first fatality from the novel coronavirus. 

- NZ terms of trade index rose more than expected, but has failed to provide

much support to the kiwi amid fear of the spreading coronavirus.

- Escalating economic threat posed by the spreading Covid-19 has prompted

several desks to boost their RBNZ easing calls. ANZ exp. the MPC to trim the OCR

by 50bp this month, with mkts pricing a ~40% chance of a rate cut of this size.

- The rate touched its worst levels since Aug 2015. Bears need it to breach the

lower 3.0% 10-DMA env at $0.6166 & lower 3.0% Bollinger band at $0.6150 to open

$0.6130, the low of Aug 26 2015. Bullish focus is on the Feb 27 high of $0.6335.

- NZ FinMin Robertson said that "information we have today is that there won't

be [a recession]," but this "prediction could be revised in the coming weeks."

- NZ highlights this week include building permits (Wednesday) & vol. of all

buildings (Friday). There's a GDT auction coming up on Tuesday as well.