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The fresh outbreak of the coronavirus in New Zealand is not a "game changer" yet as the country extended a national Covid-19 lockdown on Monday, with Prime Minister Jacinda Ardern saying a Delta variant outbreak has yet to peak.

Ardern said the rapid spread of the highly transmissible variant meant it was too early to lift restrictions imposed last week after a virus cluster emerged in Auckland, ending a six-month run of no local cases.

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The news came after health authorities reported 35 new local cases of the fast-spreading delta variant, the highest number of daily cases since April last year.

"Delta had a head start on us and we've needed to catch up as quickly as we could... we don't think we have reached the peak of this outbreak," she said.

Prime Minister Jacinda Ardern speaks to the media reporters during an event. File photo

There is no pressure to act on monetary policy, a senior central bank official said on Monday, as authorities struggle to contain the spread of the Delta variant.

First discovered last week, the outbreak has grown to 107 cases. But health authorities say they've found links among most of those cases, giving them hope they can quash the outbreak. Authorities said they've tested about 3% of the nation's entire population over the past six days.

But health authorities say they’ve found links between most of them, giving them hope they can contain the outbreak.

They said they’ve tested about 3% of the nation’s population over the past week.

Australian Prime Minister Scott Morrison gestures during a press conference. File photo

Australian Prime Minister Scott Morrison said lockdowns are were "not a sustainable way to live in this country.” He said states must open their borders once vaccination rates reach 80% of the population aged 16 years and older.

His remarks came as an outbreak in Sydney grew by more than 800 cases, near record levels. Health authorities said an outbreak centered in Melbourne also grew by 71 cases and another in the capital, Canberra, grew by 16 cases. All three cities remained in lockdown.

But in Western Australia, where there are no community infections, Premier Mark McGowan said his government wouldn't reopen at the 80% vaccination level if it meant reintroducing the virus.

About 24% of Australians are fully vaccinated.