The NZD/USD pair reached 0.5600 as election results eased political uncertainty, though 400,000 uncounted special votes and hawkish US economic data temper market conviction.
The pair jumped from Friday's 0.5527 low to a session high of 0.5600 after the ruling centre-right coalition appeared to secure 67 of 131 seats, easing political uncertainty. However, about 400,000 special votes will not be counted until November 27, and coalition talks are on hold, capping conviction. Stronger US jobs data (165K vs 65K expected) and Fed hike expectations for December work against the pair.
The New Zealand Dollar climbed to 0.5600 against the US Dollar following election results that saw the centre-right coalition secure 67 of 131 parliamentary seats. Despite the initial rally from Friday's 0.5527 low, upside remains capped by pending special votes and strong US jobs data that bolstered expectations for a December Federal Reserve rate hike.
It jumped to 0.5600 after the first election results suggested Prime Minister Christopher Luxon's centre-right bloc secured enough support, with 67 of 131 seats, to stay in power.
Not fully: around 400,000 special votes will not be counted until November 27, major parties will not start coalition negotiations until then, and strong US jobs data supporting a possible Fed rate hike in December limits the pair's upside.