BNZ write "the gap between the spot rate.......>

KIWI: BNZ write "the gap between the spot rate (NZD/USD) and our short-term fair

value estimate is the greatest it has been this year, nearly 4% "cheap", in an

environment where risk appetite and NZ commodity prices have been tracking

higher. This valuation gap isn't statistically significant at this stage, but is

indicative of the NZD trading on the cheap side of fundamental fair-value, with

recent weakness influenced by speculators taking short positions after the

RBNZ's dovish pivot in late-March. The recent fall in the NZD puts it at the

lower end of its trading range seen since November and is no cause for panic.

Indeed, our projection for the end of June has sat unchanged at 0.67 since our

last forecast revision back in December."