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The NZ Government announced a NZ$12.1b fiscal package to address the negative impact of the coronavirus.  Market’s initial reaction was to bid the NZD, but is unchanged on the session, economists at TD Securities inform. 

Key quotes

“The NZ Government has announced a bold NZ$12.1b fiscal package to cushion the economy from the negative impacts of the coronavirus. It is equivalent to 4% of GDP, and tips the government borrowing above its self-imposed 25% of GDP limit.”

“The NZD is slightly firmer but the initial budget response was to bid the NZD, in turn driving AUD/NZD to just shy of 1.0050. The AUD/NZD is now back at levels prior to the fiscal announcement around 1.0110.”