The British pound to New Zealand dollar exchange rate (GBP/NZD) has fallen as the Reserve Bank of New Zealand opts to sit on the sidelines for now.

We saw such an attack on the kiwi dollar in October.

“This pair fell almost four cent after the RBNZ’s governor Wheeler issued a statement that announced the Official Cash Rate was being unchanged at 3.5%. Wheeler confidently spoke about New Zealand’s economy, saying that the current economic growth is being supported by construction activity and strength in business investment,” say CaxtonFX in a note to clients following the announcement.

The pound to New Zealand dollar exchange rate fell nearly half a percent on the announcement.

Wheeler noted that:

“Risks to the growth outlook include dairy prices, which are expected to recover in 2015, the overvalued exchange rate, and the strength of construction activity. Inflation risks include the impact of rising capacity pressures on domestic inflation, the response of house prices to the strong migration inflows, and the impact of lower oil prices.”

No data is due to be released from either country until tonight’s Business NZ Manufacturing Index results at 21:30. Until then this pair is likely to focus on releases out of the US.

There is room for volatility this morning as the BoE’s Governor Carney and his deputy Broadbent are holding a press conference.