• NZD/USD remains sidelined after reversing from one-month high in the last week.
• RBNZ’s Hawkesby cites fears of increasing floods but stated that the NZ banks are resilient.
• Markets remain sluggish mixed concerns about banks, geopolitics.
• China’s official PMIs, US Core PCE inflation eyed for clear directions.

NZD/USD portrays the market’s inaction by making rounds to 0.6200 during early Monday, following a downbeat weekly closing. In doing so, the Kiwi pair fails to justify the Reserve Bank of New Zealand’s (RBNZ) cautious optimism, as well as mildly positive sentiment, amid a light calendar, mixed news and anxiety ahead of the top-tier data from the US and China.

Earlier in the day, Reserve Bank of New Zealand (RBNZ) Deputy Governor Christian Hawkesby pushed back the fears of banking fallouts in New Zealand (NZ) even as the Pacific nation is likely to witness more floods. “The capital ratios of the country's banks will remain resilient during most severe weather events though more studies were needed to understand how they could potentially compound with other risks to the financial system,” said RBNZ’s Hawkesby.

On the other hand, a light calendar and a lack of major macros challenge the momentum traders of the NZD/USD pair.

Talking about positives, Bloomberg’s news surrounding the Silicon Valley Bank (SVB) seemed to have contributed to the risk-on mood. “First Citizens BancShares Inc. is in advanced talks to acquire Silicon Valley Bank after its collapse earlier this month, according to people familiar with the matter,” said Bloomberg. On the same line were comments from Minneapolis Fed President Neel Kashkari who flagged fears of US recession and tamed calls for more rate hikes from the US central bank.