Kiwi Gains As Presser On Auckland Outbreak Brings Some Clarity

The kiwi has regained poise and outperforms G10 peers at the margin as NZ PM Ardern and Director-General of Health Bloomsfield have briefed the press on the Auckland outbreak of Covid-19. Bloomsfield noted that two further infections linked to the original case have been identified, bringing the total number to 7. Ardern revealed that "our case has originated in Australia" and has been traced back to the NSW outbreak through genome sequencing.

• NZD/USD last seen +11 pips at $0.6930 after a ~20 pip jump as the presser went underway. Familiar technical levels remain in play.
• AUD/NZD has shed 17 pips and now sits at NZ$1.0469, with bears looking for a dip through yesterday's cycle low/Dec 1, 2020 low of NZ$1.0420/18, which provide an important layer of support. Bulls see yesterday's peak at NZ$1.0514 as their initial target.
• NZD/JPY changes hands +11 pips at Y75.94. Bulls look to retake Aug 11 high of Y77.93, while bears need a fall through Aug 17 low of Y75.38 before taking aim at Jul 20 low of Y75.27.
• Implied odds of a 25bp OCR hike from the RBNZ today continue to waver, with the OIS strip currently pricing 17bp worth of tightening come the end of the meeting.