Round Trips On Monday

NZD/USD round tripped from an intraday trough at $0.7003 Monday, driven by the broader risk backdrop. The kiwi took a hit early on as Covid-19 situation in NSW/Sydney across the ditch & in the UK and continued Brexit stalemate weighed on risk. Downside pressure on NZD moderated as the $0.7000 figure stood resilient, and the rate clawed back the bulk of its earlier losses with the passage of an economic relief package in the U.S. in sight.

• Interest.co.nz added its two cents to the debate on NZ housing market, noting in its latest Home Loan Affordability Report that "the benefit of falling interest rates on mortgage payments is now being more than offset by rapidly rising house prices, as prices increase at a greater pace than interest rates are falling."
• Elsewhere, per StatisticsNZ's Tourism Satellite Account, total tourism spending growth slowed to +2.4% Y/Y, which is the worst pace since 2013.
• NZD/USD now sits at $0.7096, a touch lower on the day. The $0.7000 figure provides the next key support level after the rate bottomed out just above there four times this month. Below there opens Nov 23 low of $0.6897. Bulls need a break above the upper 2.0% Bollinger band at $0.7149 before targeting Dec 17 YtD high of $0.7171.
• Nothing much of note left on the NZ docket this week.