Having taken the Kiwi to a two-year low against the US dollar, investors called off their attack. In doing so they brought an end to a 10% decline that was three months in the making. On the week the NZ dollar added a quarter of a US cent. It also began to recover against sterling but was still left with a net weekly loss of three quarters of a cent. The Kiwi's revival came despite a couple of unhelpful NZ ecostats: Business confidence fell from -11% to -20% in the second quarter and the fortnightly index of dairy prices showed them falling by 5.0%.
Sterling got a much better break from the economic data. The three UK purchasing managers' indices - for manufacturing construction and services - all beat analysts' forecast and came in higher on the month. Those numbers led investors to believe that the Bank of England could take interest rates higher in August.