Fxstreet.com (Sydney) New Zealanders and Canadians often wince at being confused with their close neighbours: Australians and Americans respectively. So please spare a thought for the Kiwi currency in the coming days.

While the NZD/USD pair traded without change (bid 0.7154, ask 0.7158) its fortunes will be hitched to the Aussie. In other words, as with the AUD, the Kiwi dollar is closely associated with risky assets, meaning that any fallout in the market's confidence will mean a downward spiral to being undervalued. Equity markets around the world fell sharply last week.