Comments from the Reserve Bank of New Zealand´s Assistant Governor Karen Silk have crossed. She noted that Cyclone Gabrielle was less inflationary than first feared and stated that rates need to stay on hold for an extended period. She said that they must be watchful of over-tightening policy and that the RBNZ can hold now and see what develops.

NZD/USD update

´´The Kiwi continues to tumble, and although it has lost further ground on most crosses overnight, a part of that reflects dollar strength, with the USD DXY up strongly as bond yields there rise on better data and (albeit slow) progress on debt ceiling negotiations,´´ analysts at ANZ Bank explained. It trades at 0.6055 currently.