NZD/USD rallied on the back of a weaker US Dollar in the wake of soft ISM data. At the same time, the commodities sector bounced, led by oil which was supportive of the Kiwi.

´´ The question now is; will a hawkish RBNZ tomorrow give the Kiwi the “escape velocity” it needs to break above 0.63? It may well do, especially if US bond yields continue to fall and markets there fret about financial instability,´´ analysts at ANZ bank argued.