Forex Flash: NZD - the fiscal position remains ontrack – TD Securities

FXstreet.com (London) - Alvin Pontoh, Asia-Pacific Macro Strategist, FX & Rates Strategy for TD Securities notes tat The NZ Budget confirmed that the fiscal position remains ontrack to achieve a surplus in 2014/15. He said that this a better starting point (deficit of -2.9% of GDP, vs –3.4% previously) and has allowed for $NZ2b less bond issuance than previously forecast, at $NZ32b over the next four years. The explained that the market reaction was minimal as the budget offered few surprises relative to market expectations. Meanwhile, as part of measures to mitigate growing financialstability risks arising from the continuing rise in house prices, he mentioned that Finance Minister English has signed an MoU with Governor Wheeler on the use of macroprudential tools, and will consult with banks over the next two months on “implementation details”.

Also PMI edged up to 54.5 in Apr, from 53.4