The initial gains for the New Zealander have been wiped out after the inadequate election result on Saturday, leaving investors uncertain about the ruling coalition.
Kiwi fell to 0.7291 on opening, after it became clear that the current National Party won 58 seats from the 120-seat Chamber and the main opposition Labor Party managed to take 45 seats.
Forming a government will depend on which of the two leading parties succeeds in making a coalition agreement with New Zealand's smaller First Party. Talks on this coalition can last for weeks, and this has a strong negative impact on the NZD.
The latest data from the country indicate that the current New Zealand Prime Minister Bill English wants to form a government after winning the majority of the country's votes.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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