The kiwi made strong gains against the pound at the end of last week but has pared its gains this morning

Sterling slipped back nearly two cents against the kiwi dollar as risk appetite was upheld by strong US and Asian equities.

• Having traded sideways during the European session on Friday, the kiwi made gains as the US equity markets opened on a positive note, despite weaker than expected trade data, which spurred a modest return to risk appetite.
  
• In trading this morning the kiwi is slightly lower after data showed little inflationary pressure in the economy, supporting the central bank's view that rates will be on hold until the second half of 2010.
  
• The New Zealand producer price index fell more than expected in the third quarter, while activity in the services sector retreated for the first time in four months in October, reflecting a patchy recovery from the recession.