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The USD was boosted by higher yields, but NZD found even more favour on yesterday’s vaccine-optimism risk rally and the kiwi broke through the 0.68 level. The Reserve Bank of New Zealand (RBNZ) meeting on Wednesday will be a test but it may not be enough to push against the tide of global news, per ANZ bank.

Key quotes

“The USD finally found its feet as global yields broke higher on positive vaccine news. But NZD outperformed as the surge in equities buoyed risk currencies, breaking through key resistance at 0.68, but struggling to push much higher on the countervailing USD bounce.”

“NZD strength has been bulletproof of late on global news, but a test lies ahead, with the MPS expected to bring more stimulus, along with a likely reminder the RBNZ has more tricks up its sleeve.”

“Support 0.6730/0.6750 – Resistance 0.6840”