NZD/USD bulls step in with eyes on 0.6865

• NZD/USD spikes in the open in a continuation of Friday's risk on gains.  
• Odds of the OCR needing to go negative have slimmed.

NZD/USD is treading water in thin air following a spike to the upside in the open to print fresh highs to 0.6854 as bulls make the case for an upside extension towards 0.6865 resistance. 

At the time of writing, the cross is trading at 0.6853 from 0.6840 lows and is up some 0.2% on the day so far. 

NZD crosses were gaining ground on Friday with improved risk appetite and a weaker greenback which was weighed down by a rally in US stocks. 

''Now the dust has settled on last week’s events (vaccine news and the RBNZ) the risk is we see the Kiwi come back a touch as short-end rates retrace lower after what looks like an over-reaction,'' analysts at ANZ bank explained. 

''The odds of the OCR needing to go negative have slimmed, but it’s still a very real possibility and the world is not yet through COVID – case numbers are growing more rapidly in the US. ''

Meanwhile, as the spread continues in the US into what is going to be several weeks of winter, the US economy could be thrown into lockdown again.

Such a sentiment could assist the pair higher in the convergence between the two's nations. The President-elect Joe Biden is biased towards lockdown and if the virus peaks at the start of next year, markets are going to be mindful of the risks.