NZD/USD weakens by over 1% today as a new lockdown in New Zealand following one single case of covid in Auckland could be a reason for the Reserve Bank of New Zealand (RBNZ) to delay the first step in the normalisation of interest rates, however, is still the most likely Central Bank to start with rate hikes.

The kiwi is set to remain vulnerable while below the 70 cent mark and is at risk of a steeper decline, and also where the 200 MA marks, just above the 71 cent mark. A break of the key support area on the weekly timeframe, at the 68.5 cent level, could invite more sellers to take the pair towards 65 cents, if guidance remains unchanged from the RBNZ.

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