NZD/USD erases early losses, stays below 0.6450

• NZ PM Arden expects coronaivurs outbreak to hurt economy in H1.
• China voices commitment to stimulate economy via tax cuts.
• US financial markets are closed on Monday in observance of Presidents Day.

The NZD/USD pair edged lower at the start of the week but didn't have a hard time erasing its losses. As of writing, the pair was trading at 0.6440, where it was virtually unchanged on a daily basis.

Eyes on coronavirus headlines

Commenting on New Zealand Treasury's economic forecasts, Prime Minister Jacinda Arden noted that the coronavirus outbreak was seen on the economic growth during the first half of the year. In the meantime, the ANZ Bank's Monthly Inflation Gauge stayed unchanged at 3.2% on a yearly basis.

Although the NZD struggled to find demand during the Asian session, China's commitment to helping the economy allowed antipodeans to show resilience. China's Finance Minister Liu Kun said that they will be introducing "targeted and phased measures" to cut taxes with an aim to stimulate the economy in the wake of the coronavirus outbreak. 

The market action is expected to be subdued in the second half of the day on Monday as US financial markets will remain closed in observance of Presidents Day.

The only macroeconomic data featured from New Zealand will be the REINZ House Price Index.

Technical levels to watch for