"He worked this morning and worked well," says James, who trains Pinarello with Robert Wellwood.
"It was a calculated risk to scratch on Saturday but I really didn't think he needed a hard run on a track that wet.
"I wanted a race but not that type of race and I am happy enough we missed it.
"With the very wet weather over here, it hasn't been ideal, but I am confident we will get him to the Derby in the right shape, especially after he was able to win at Pukekohe last start off a similar prep."
Pinarello remains the second or third favourite for the Derby even after missing the Rough Habit but the market has plenty of fish hooks as trainers try to work out which horses who were beaten there should continue down the Derby path.
Alegron, who was luckless in the South Australia Derby on Saturday, remains well in the market for the Queensland Derby but whether he makes the trip north after a busy multi-state campaign remains to be seen so it is a case of punters beware.
Cambridge galloper Tutukaka, who only got warm late in the Rough Habit, will be the other New Zealand rep in the Queensland Derby.
Dark Destroyer wasn't the only New Zealand galloper at the head of a Group 1 market after Saturday's races, with Entriviere a short-lived favourite for the Kingsford Smith Cup on May 28 before news broke she won't be heading there.
Entriviere flew home from last to third after starting from the widest barrier in the Doomben 10,000 on Saturday, and with the winner Mazu heading for a spell, Entriviere was promoted to favourite for the A$700,000 Kingsford Smith.
But Te Akau boss David Ellis has confirmed the Railway winner won't be asked to back up in the Kingsford Smith and will instead go straight to the glamour race of the Queensland carnival, the Stradbroke on June 11.
"We don't want to back her up that quickly, so the Stradbroke is the aim," says Ellis, who also confirmed to the Herald the intention is for Entriviere to race on next season.
"At this stage, we are thinking of spelling her in Queensland after this carnival and sending her straight to Melbourne for the spring."
Trainer Mark Walker will still have a Kingsford Smith contender in Sword Of State, who is likely to use the 1300m feature to try and secure an Australian Group 1 before he retires to Cambridge Stud in the spring.