Reserve Bank of NZ Financial Stability Report:

• Risks to the financial system have increased over the past six months
• While global economic environment has become more volatile, our financial institutions are in a strong position to support the economy
• Banks have strong capital and liquidity buffers in place to maintain credit flows even if conditions deteriorate further
• Banks also remain profitable, with non-performing loans expected to decline as mortgage rates reprice lower
• General insurers are experiencing more stable conditions
• Recent insurance stress test highlighted improved resilience in the sector
• Geopolitical risks have heightened financial market volatility and pose a material risk to global economic activity

NZD/USD update, down a few tics after its rally on Tuesday:

This article was written by Eamonn Sheridan at www.forexlive.com.