There was little among the NZ economic data to encourage buyers of the Kiwi. A three-point improvement in the Business NZ purchasing managers' index was welcome enough but not sufficient to offset the disappointment of the gross domestic product figures 24 hours earlier. New Zealand's economy was supposed to have expanded by 0.7% in the fourth quarter of 2016: in fact it grew by only 0.4%. Having moved ahead during the first part of the week the Kiwi came to a halt and began to retreat.

Sterling began the week on the back foot as a result of poor UK output data and a slowdown in the pace of wage growth. The leap forward came when it was revealed that one member of the Monetary Policy Committee had voted for a rate increase this week. The Kiwi ended with a loss of three quarters of a cent to sterling and a gain of three quarters of a US cent.