Among the commodity-oriented currencies it was the NZ dollar that escaped with least damage. Investors were inclined to stay away from them, preferring the supposed safety of the euro, the Japanese yen and the US dollar. The reason for their caution was lacklustre economic data, which fed a general concern about the global economy. The ecostats from New Zealand itself were not bad: unemployment did tick up from 5.4% to 5.7% in the first quarter but the other employment figures were decent enough.

Unfortunately for the Kiwi it was dragged down by the Reserve Bank of Australia, first when it unexpectedly cut the Cash Rate from 2% to 1.75% and then when it marked down its inflation forecast. Although this had no direct impact on the NZ dollar it damaged sentiment. As a result the Kiwi lost a net one and a quarter US cents and it fell by a cent and a quarter against sterling.