The New Zealand dollar opened lower with a gap against the US dollar reaching lowest level over four months at 0.7057, which is a strong support level.
This decline comes in light of the uncertainty regarding the new government in the absence of any of the parties to the absolute majority that enables them to do so, where the final results after counting the special votes as follows:
- National Party 44.4%
- Labor Party 36.9%
- New Zealand First Party 7.2%
- Green Party 6.3%
Thus, the National party gets 56 seats in parliament in return for the potential coalition between Labour and the Greens Parties to get 54 seats. It is the decision of the New Zealand first party that will help in forming the new government after winning 9 seats. For the majority to form a government, 61 seats must be obtained in parliament.
New Zealand first will hold several discussions with the National party and the Labour Party to join either of them to form the new government.
