The RBNZ is set to release a special economic assessment on Thursday

When the RBNZ revealed last week that it will release an economic review ahead of the scheduled date, the market took it as a sign the RBNZ would use the numbers to justify an August rate cut.

Credit Agricole believes that's what's coming at 2100 GMT:

"We expect the RBNZ to deliver a very dovish message in its special economic assessment this Thursday.

The risk, therefore, is of another miscommunication to the market by the RBNZ and more volatility in the NZD and NZ rates markets.

The RBNZ would have to all but promise a rate cut in August in order to sustain current rates and FX market pricing. This will be a difficult task, we think, in light of the key labour-force data and inflation expectations to be released in the coming weeks."

NZD/USD is down 21 pips to 0.7031 today.