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The New Zealand dollar has tumbled in foreign exchange markets after the fallout from the party with the balance of power, the populist First Party after the recent election decision to side with the opposition Labour/Green coalition. The inexperienced Jacinda Arden is the new Prime of Minister of New Zealand which has caused finacial markets to lurche lower. Arden at 37 years old, is New Zealand’s youngest prime minister since the 1850s after becoming the country’s youngest Labour leader.

NZ Jacinda Ardern

New Zealanders have been waiting since the Sept. 23 election to find out who will govern the country after the voting ended in a stalemate. The surprise move has seen the New Zealand dollar tumbles particualy against the US and Australian dollars, the Japanese Yen and the British Pound,  The GBPNZD is the biggest pip mover with a range over 330 pips pip range.

The Kiwi wilts under Arden as PM

NZDUSD Arden 10 19 17

NZDJPY Arden 10 19 17

AUDNZD Arden 10 19 17

GBPNZD Arden 10 19 17

Ardern Platform

  • Curb immigration,
  • Ban foreign speculators from buying homes
  • Build thousands more affordable houses.
  • Spend more money on health care and education

Peters Concessions

  • Deputy PM if chooses to
  • First Party will not provide finance minister
  • Expects change to Reserve Bank Act
  • NZ to expect less immigrant arrivals
  • Didn't secure Singapore monetary policy tool for NZ
  • Has not yet concluded talks on ministerial portfolios

New Zealand First leader Winston Peters said his party's choice was either "a modified status quo" with the incumbent conservatives or an option for change. The left edge Green Party will support the coalition but won't be a part of the government's policy-setting Cabinet. The Green Party ratified the deal late Thursday.

A government needs at least 61 seats to hold a majority in the 120-seat parliament. National won 56 seats, Labour won 46, New Zealand First won nine seats and the Green Party won eight.

Source: Australian. SMH

From The Traders Community News Desk

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