NZ Dollar Under Pressure from Election Outcome, Poor Data

The New Zealand dollar fell for the second consecutive day today, driven down by the outcome of the weekend general election as well as today’s macroeconomic data that was extremely poor.

The ruling National party gained the most of the seats in the parliament after the election that took place on September 23, but failed to secure a clear majority, resulting in a hung parliament. The New Zealand trade balance turned from surplus in July to a deficit of NZ$1.2 billion in August, which exceeded specialists’ projections. The ANZ Business Confidence index logged a sharp decline from 18.3 in August to 0.0 in September — the worst reading in two years.

NZD/USD dropped from 0.7262 to 0.7200 as of 12:47 GMT today. NZD/JPY declined from 81.13 to 80.63.

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