New Zealand elect PM Luxon: Have tremendous progress informally with coalition partners

<ul><li>Final results from New Zealand's October 14 election show that the National Party needs support from ACT New Zealand and NZ First to form a government.</li><li>The National Party led by Christopher Luxon secured 48 seats, ACT won 11 seats, resulting in a combined total of 59 seats out of 122 in the parliament. That was short of the 62 seats needed to govern</li><li>New Zealand First party's – led by Winston Peters – has eight seats and would provide the necessary majority for these three parties to form a coalition government.</li><li>Although the Labour Party conceded defeat in the election, right-wing parties are awaiting the final vote count to confirm coalition agreements and establish the new government.</li><li>The number of parliamentary seats has increased from 121 to 122, with Te Pati Maori winning more electorate seats.</li><li>The final vote includes approximately 603,000 special votes, representing about 21% of the total, including overseas voters and those who cast ballots outside their constituency, which were not initially counted.</li></ul><p>Other details:</p><ul><li>The final vote count may hinder Luxon's new government from implementing its plans.</li><li>Support from a broader range of lawmakers will be needed to pass bills.</li><li>Peters will gain more influence to push his own bills and plans.</li></ul><p>New Zealand doesn't release special votes in real-time but waits to release them in a single batch. Special votes accounted for 21% of all votes and tend to favor liberal candidates. New Zealand uses a proportional voting system similar to Germany. Of the votes, the National received 38%, ACT 9%, and New Zealand First 6% of the vote.</p><p>The opposition includes Labour Party at 27%, Green Party at 12%, and Indigenous Māori Party at 3%.</p><p>The NZDUSD which was lower earlier in the session is retracing the declines and is trading near unchanged on the day now. If the bars are to take more control, the 200 bar moving average of the 4 hour chart comes in at 0.59097. The 8% midpoint of the move down from the October high to the October low comes in just above that level at 0.59135. Breaking above both those levels – and staying above – would be needed to increase the bullish bias.</p>

This article was written by Greg Michalowski at www.forexlive.com.