Kiwi consolidates on recent gains

The New Zealand dollar consolidated on recent gains against sterling on Friday as demand for high yielding currencies took a breather.

• The RBNZ's decision last week to leave rates on hold sparked debate that the bank has effectively ended its easing cycle, despite it leaving the door open for further rate cuts.
  
• Investors are now starting to price in the potential for rate increase next year.
  
• The Kiwi was little moved by Retail sales data on Friday which revealed a bigger than expected rise in April. This was largely driven by car sales.