New Zealand Dollar Rises Although Jury Is Still Out On Coalition Talks

Market’s have feared a New Zealand Firat, Labour, and Green Party coalition the most so one possible reason behind the Dollar’s move higher is the shift in focus of talks to bring Bill English’s National party back into the spotlight. 

With charts coloured a decidedly bearish tint and high event risk on the horizon in the form of the eventual cast of the next New Zealand government, the New Zealand Dollar could be about to make some volatile moves.

“We have got a few logistical thing to work out but as soon as possible after [Thursday night]," says Winston Peters, New Zealand First leader.

New Zealand coalition talks are likely to keep the GBP/NZD exchange rate supported over the course of the coming week but beware a swift resolution to New Zealand political uncertainty.

The New Zealand Dollar is showing signs of weakness possibly prompted by a fresh bout of election anxiety, days before a decision on the composition of the next government looks to be finally made.

The Pound-to-New Zealand Dollar is trending lower as Sterling sells off this morning amidst a clutch of news and data which showed ther currency in a negative light; we look at the next chart levels to watch. 

The New Zealand Dollar has been weighed down by a fall in milk prices which lends support to the bullish technical outlook on the GBP/NZD chart.

 The Pound-to-New Zealand Dollar pair continues to consolidate between roughly 1.83 and 1.87 in a sort of box-shaped pattern.