Activity in the financial markets was dampened by national holidays in Canada and the United States. Ranges were relatively narrow and there were no big moves among the major currencies. The Kiwi was in the middle of the field, not far behind sterling. It lost a third of a cent to the pound and half a US cent.

Economic data from New Zealand were typically few and far between. Business confidence improved incrementally and the GDT index of dairy prices was down by an insignificant -0.4%. UK ecostats were only slightly more numerous and they were not particularly good. Investors were disappointed that there was no upward revision to first quarter growth, which was unchanged at 0.2%. They were also disenchanted with the purchasing managers' index readings, which measure business activity in the private sector. All three - for manufacturing, construction and services - came in lower on the month and below forecast.