New Zealand is one quarter away from recession. The New Zealand dollar is firmly embedded in a long-term decline.

This hasn't changed our view that the New Zealand dollar is in a serial decline. The currency is on a depreciation cycle, regardless of whether interest rates go down or not.

The Australian dollar is being marked down by association with the New Zealand dollar.

In the short-term, sentiment [towards the dollar] is probably quite negative.

Either you have a big adjustment like a 20 percent or 30 percent decline, or you have a big recession or you have a slow decline in property prices or several years of no growth.

Yield demand for the New Zealand dollar appears to remain unquenched.