Nzd/usd dropped to new lows today on formation of a new government that is in the form of a coalition between the Labour and New Zealand first party . Investors were concerned about the economic policies of the new government .There is concern that Labour will be less business friendly or have a loose fiscal stance .These concerns have hit the nzd dollar hard with nzd/usd hitting a 5 month low. Only a favorable announcement from the new government in respect of future economic policies and goals will put a floor on the pair and will lead to some recovery in the coming days .
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