New Zealand To Replace Lockdowns With Traffic Light System Once 90% Get Jabs

Thursday was a bearish outside day for NZD/USD, as the pair snapped a six-day winning streak, which saw it add as many as ~270 pips. A more cautious general risk tone was the main culprit, as global inflation concerns continued to linger, while the familiar Evergrande worry resurfaced.

• NZD/USD last sits at $0.7154, little changed on the day. Bears look for a resumption of losses and a break under the 200-DMA/round figure at $0.7101/00 would confirm that they are gathering momentum. Bulls look for a rebound above yesterday's high of $0.7219, followed by the ceiling of a descending channel drawn off Feb 25 high/Jun 7 high at $0.7242/43.
• PM Ardern reiterated that the government is aiming to reopen Auckland before Christmas. The PM noted that once New Zealand meets the target of vaccinating 90% of citizens aged 12 or over, the government will shelve full lockdowns and replace them with a traffic light system of limited, targeted restrictions.
• The new system could be implemented asymmetrically across the country. Auckland will be allowed to exit lockdown and switch to the new framework once all three of its DHBs inoculate 90% of eligible residents. The South Island could move to the new system earlier than the rest of the country, if it meets the vaccination target.
• Speaking alongside PM Ardern, her deputy Robertson added that the gov't is boosting aid for businesses affected by the resurgence of Covid-19. Payments will be doubled and paid fortnightly rather than three-weekly, until Auckland transitions to the traffic light framework.
• Next week's highlights include New Zealand's trade balance & final ANZ Business Confidence (Wednesday) as well as ANZ Consumer Confidence (Friday).