2020.04.2008:04:00UTC+00NZ Dollar Strengthens As NZ Set To Lessen Lockdown Restrictions

The New Zealand dollar spiked up against its major counterparts in the Asian session on Monday, after Prime Minister Jacinda Ardern announced plans to ease lockdown restrictions from next week, citing a slowdown in the new coronavirus cases after imposing tight restrictions for a month.

In a news conference, the PM said that the nation will move from the current alert 'level four' restrictions to 'level three' on Tuesday. It will remain at level 3 for at least two weeks.

The chain of transmission has broken, the PM said, adding that the economy could start to operate again without the virus scare.

The relaxation allow schools to re-open, businesses such as construction, manufacturing and forestry to resume operations and restaurants to offer delivery services.

China cut its benchmark lending rate by 20 basis points as expected, as the economy contracted for the first time at least since 1992 amid coronavirus outbreak.

The one-year loan prime rate was lowered by 20 basis points to 3.85 percent and the five-year loan prime rate was cut by 10 basis points to 4.65 percent.

The kiwi appreciated to a 5-day high of 65.34 against the greenback from last week's closing value of 64.83. The next immediate resistance for the currency is seen around the 67.00 level.

The NZD/USD pair approached 0.6061, its strongest since April 15. The kiwi is seen finding resistance around the 0.64 mark.

The kiwi firmed to 6-day highs of 1.7930 against the euro and 1.0491 against the aussie, off its early lows of 1.8077 and 1.0556, respectively. The kiwi is likely to challenge resistance around 1.70 against the euro and 1.02 against the aussie.

Looking ahead, Eurozone current account and trade data for February are due in the European session.

Canada wholesale sales for February are set for release at 8:30 am ET.