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One-month risk reversals on NZD/USD rose to -1.013 on Wednesday, the highest level since Sept. 7, indicating a weakening of demand for put options or bearish bets, according to Reuters. In other words, the bearish bias is weakest in over two months.  

The NZD/USD pair jumped to fresh 20-month highs above 0.69 early Wednesday, taking the week-to-date gain to over 1.8%. The pair rallied by 2.41% last week.  

The bid tone around the Kiwi has strengthened this week on heightened expectations for a coronavirus vaccine and the Reserve Bank of New Zealand’s optimistic tone on the economy. The central bank said early Wednesday that both the domestic and the global economy have been more resilient than previously expected, forcing the money markets to price out prospects of the benchmark rate falling below zero next year.