There is another, potentially even more potent force at play: the unwind of the carry trade as the Japanese Yen recovers from multi-decade lows.
The New Zealand Dollar is falling amidst disappointment in China and growing odds of an interest rate cut at the Reserve Bank of New Zealand (RBNZ).
The Pound to New Zealand Dollar is on course to break the 2023 high at 2.1587, but warning lights are flashing that this is a very overbought exchange rate.
The New Zealand Dollar is broadly stronger after the release of inflation figures that showed the Reserve Bank of New Zealand (RBNZ) still has more work to do if it wants to achieve the 2.0% target.