Remains Heavy, NZ Health Officials Investigate Two Possible Covid Cases

NZD/USD turned its tail Wednesday and retreated under the prior day's low, swinging to a loss on a weekly basis. The rate was weighed on by demand for the greenback into the month-end/FOMC MonPol decision & broader risk-off mood linked to a poor showing from global equity markets.

• On Tuesday evening, New Zealand's Health Ministry said that it is investigating two other potential Covid-19 cases, both are recent returnees from abroad.
• NZD/USD has extended losses this morning (last trades -16 pips at $0.7144) and the kiwi is the worst G10 performer at typing. Risk-off feel has spilled over into the Asia-Pac session, while New Zealand released trade data for the month of Dec.
• NZ trade surplus shrunk to NZ$17mn from NZ$290mn, defying expectations of an expansion to NZ$800mn. Exports rose slower than expected, which was coupled with a dynamic, above-forecast increase in imports.
• CoreLogic warned that residential property investors may face further restrictions in 2021. These may include an LPR restriction of 40% and an extension of the Bright Line Test for tax on capital gains beyond the current five year threshold.
• Covid-19 Minister said that the gov't won't reconsider its Covid-19 alert levels before there is proven community transmission. Hipkins will hold a press briefing at 13:00 local time.
• Bears need a dip through the 50-DMA at $0.7119 before taking aim at Jan 18 low of $0.7096. Meanwhile, a break above Jan 26 high of $0.7248 would open up Jan 6 high of $0.7315.
• Focus turns to Friday's ANZ Consumer Confidence Survey.