The number of new daily cases of COVID-19 has almost halved for the second day running, with the state reporting eight cases to 8pm on Monday night.
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Premier Gladys Berejiklian highlighted that the lower case number had been found among a record 44,466 tests reported to 8pm last night.
"This was a record we did not expect," she said, adding that she was "proud and deeply grateful that people had responded" to calls for more testing.
"NSW is really pulling together to get through this stage of the pandemic."
She said she was still planning to make an announcement tomorrow about what restrictions for Greater Sydney, Central Coast and Wollongong would look like over Christmas.
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