The NZ yields are sitting above a psychological level of 1% and have been flirting with this level for a couple of weeks. This is undoubtedly driving demand for the commodity currency, which has now hit 0.722 along with the general risk on mood that is pervading markets at year end. As we go into the European trading session of the year, the big question is will the risk on mood continue and the kiwi push higher? Or will traders see this new high as a profit taking opportunity?