To describe the FX market as muddled over the last few days would be to credit it with a wholly unjustified semblance of orderliness.  Investors were confident, scared, optimistic, frightened and upbeat, in that order.  The NZ dollar's status as a commodity-oriented "risky" currency meant that it was bought, sold, bought, sold and bought again as investors' mood changed almost with their socks.

While its cousins in Canada and Australia managed to gain ground against the pound and the US dollar the Kiwi lost a fifth of a US cent and fell by three cents against sterling.  The reason for its decline was a statement released by the Reserve Bank of New Zealand when it kept its Official Cash Rate at 2.5% for s second month.  It had a nervous tone ("there are many risks around the outlook") and included the comment that "further policy easing may be required over the coming year".