New Zealand Election: Coalition announcement on October 19th

New Zealand’s political uncertainty may finally end tomorrow on October 19th, which was triggered by the September 23rd general election that failed to deliver a clear win for any of the Party. Ruling National Party led by Bill English received 44.5 percent of the votes and won 56 seats, while the main challenger Jacinda Ardem’s Labour Party won 36.9 percent of the votes and 46 seats in 120 members’ parliament.  Green Party won 8 seats. Winston Peters New Zealand First Party won 7.2 percent of the votes and 9 seats, making it a kingmaker in the coalition talks. Both the major parties were in talks with New Zealand’s First Party to lure it to a coalition.   

At one hand, there is a chance of two-party coalition between the National and New Zealand First or tri-party coalition among Labour Party, Green, and New Zealand First. NZ First’s leader Winston Peters has announced that he would announce the result of the coalition talks tomorrow, 19th October at some time in the afternoon.

The event could turn out to be bullish or bearish for the New Zealand dollar, which is currently consolidating around 0.72 and showing technical signs of a decline.