Citi with their response to the RBNZ yesterday and a comment son the kiwi $.

RBNZ ... express some optimism in revised economic scenarios in the MPS

two factors drive NZD sharply higher

  1. Firstly, Governor Orr in the press conference raised doubts on a negative OCR, saying it s too early to tell if a negative cash rate is needed. This appears to have been the primary driver of NZD strength
  2. Added to this, we have seen a number of local economists revise their calls away from a negative OCR in April/May 2021. Combined with the above, this has seen some walk-back of the narrative of policy divergence between RBA and RBNZ in the market

NZDUSD has also made new yearly highs, firmly breaking above 0.6800 resistance which had held a number of times throughout September. This has opened up the door to a move to the early 2019 highs around 0.6940-50.

0.7000 will act as psychological resistance too beyond here.