The RBNZ(Reserve Bank Of  New Zealand ) this morning escalated its concern about the currency, stating that "should the exchange rate remain strong without anything else changing, the Bank would need to reassess the outlook for monetary policy settings".

This is undoubtedly, according to ANZ Research Analysts Richard Yetsenga and David Croy, more dovish than comments made in March, when the Bank said "sustained strength in the New Zealand dollar would reduce the need for future increases in the OCR".

"We would expect the RBNZ to take every opportunity to "talk down" the NZD, which could dent sentiment around such commentary. However the hurdle for following up on their apparent threat to cut seems very high indeed, and we would expect the main drivers of recent NZD price action - being global rather than local - to continue to drive the currency. That suggests remaining bullish the kiwi medium term" ANZ Analysts added.