Business confidence remains at multi-decade highs for the first three months of the year, although the strong upswing of previous quarters has flattened out

The kiwi was the worst performing currency tracked by Reuters overnight, falling as low 85.45 US cents after rising as high as 87 cents earlier this week.

Australian business groups are urging the Reserve Bank to exercise caution before considering raising interest rates, given improving signs in the economy are not yet widespread.

The New Zealand dollar is overvalued by between 5 and 15 per cent, the International Monetary Fund reckons.

New Zealand building consents for residential housing fell 1.7 percent in February, the second straight monthly decline.

Around $47,000 could be shaved off the cost of each new place built in factories under Labour's planned KiwiBuild 100,000-house scheme, an opposition spokesman says.