Budget to presented on May 17th
- government has reprioritize around NZ$700M funding over the next 4 years
- "Combined with our moves to crack down on speculators, tax dodgers and ensuring multinationals pay their fair share of tax, we have freed up NZ$1.4B worth of funding for this government's priorities and investments next 4 years"
- He stresses a commitment to budget responsibility rules, which includes delivering a sustainable operating surplus across economic cycles and reducing net core Crown debt to 20% of GDP within 5 years of taking office
The NZDUSD was not impressed with the budget surplus. The pair is trading at the lowest level since December 27th and that makes it the lowest level for the year.
The pair is testing the 61.8% of the move up from the November 2017 low at 0.79306. A move below will open up more downside potential.
Last week, the pair fell below the 50% retracement of the same move higher at 0.7108, and a lower trend line (currently at 0.7100). That area is now risk for shorts looking for more downside.
On the downside, the next target comes in at 0.6979 and then 0.6951. They represent swing levels from November and December (see chart below).
