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NZD 8 23 240

The New Zealand dollar has sold off for 3 straight cents since tagging 75.50 in late July with pressure from AUDUSD, dairy exports and now budget projections. Kiwi now rests on a key daily support line.

Overnight the New Zealand  pre-Election Economic and Fiscal Update (PREFU) was released, though not overally bearish headline budget projections were lowered and the New Zealand Financel Minister Comemnts were not helpful on tax.

NZ Finance Minister

  • NZ finmin says government considering second family income package in 2020
  • NZ finmin says will not consider tax cuts until 2020 unless economic conditions are better than anticipated 

PREFU

NZ sees 2016/17 operating surplus before gains, losses NZ$+3.706 bln (budget forecast $+1.621 bln) 

  • Sees 2017/18 OBEGAL surplus NZ$2.869 bln (budget forecast NZ$+2.858 bln)
  • Sees 2018/19 OBEGAL surplus NZ$3.515 bln (budget forecast NZ$+4.051 bln)
  • Sees 2016/17 net debt 22.5 pct of GDP (budget forecast 23.2 pct)
  • Sees 2016/17 cash balance NZ$+1.497 bln (budget forecast NZ$+ 0.071 bln)
  • Sees 2017/18 cash balance NZ$-1.356 bln (budget forecast NZ$-1.789 bln)
  • Sees 2017/18 year GDP growth at 3.5 pct (budget forecast 3.7 pct)

NZD 8 23 D

Source: Reuters

Knovawave @knovawave

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