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New Zealand budget release

Despite infrastructure spending NZD fails to rally

The Labour government released their first national budget yesterday, committing $3.8 billion in additional investment to a myriad of areas, invoking a largely underwhelming response from markets.

As can be expected from a left leaning party, the budget was rich with spending in various areas including health, housing, and public services. At the same time however, critics focused on shortfalls from election promises, such as a reduction in actual houses built.

Generally perceived as neither ground breaking nor terrible the NZD was largely unchanged - down against the USD approximately ~0.30% this morning, with many of the other crosses also trading flat.

Australian jobs

Jobs up, unemployment... up?

Australia posted higher than expected job figures on Thursday with an additional 22.6k jobs versus 19.8k expected. This appears to have overshadowed the small increase in unemployment, up 0.1%. The NZD/AUD continued a week-long slide, falling a further ~0.20%, continuing to to mount pressure on Australian importers compounding the fall so far to ~2.50% since the 10th of May.

Looking to the week ahead

NZ retails sales, otherwise quiet

Next week is quiet in terms of data releases. NZ retail sales data is due for release on Monday morning a at 10.45am which, if positive, could lend the NZD some much needed support across the board.

Entities with GBP exposure should watch closely, Wednesday brings UK inflation figures, followed by UK retail sales data on Thursday.

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