NZD election: Peters expects to make a decision

There were no major economic reports released from New Zealand but the currency fell on the back of U.S. dollar strength, lower dairy prices and ongoing election uncertainty. The market’s appetite for the U.S. dollar and the local election will remain the key drivers of the currency next week as there are also no major reports scheduled for release. This weekend, the official election results along with each party’s share of the votes will be announced and that should help minority leader Winston Peters decide who to form a new government with. The incumbent Bill English won the most votes but the Labour party’s Jacinda Arden refuses to back down. We are not sure whether the results will provide much clarity but after 2 weeks of political uncertainty, Peters expects to make a decision by October 12th.