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NZD/USD is holding steady despite the risk rally as currency markets in general disconnect a little from equity markets. The kiwi will not see a deeper run lower while above the 0.6510 mark, per ANZ Bank.

Key quotes

“The Kiwi has been remarkably stable overnight despite the risk rally and moderately weaker USD. It’s less a case of correlations breaking down; more fatigue perhaps. But we also think local specifics – the RBNZ’s very dovish policy bias, the low and flat yield curve and expectations for negative rates – are weighing too, as are longer-term risks on the horizon like US elections.” 

“It’s a quieter week on the local data front, and that perhaps speaks of relative calm too” 

“Technically, NZD just needs to hold 0.6510 to avoid a significant foray lower.”