Labour Unveils Tax Plans, National To Make Infrastructure Announcement

Aforementioned risk-off catalysts pushed NZD/USD lower yesterday, taking the rate to its worst levels in two weeks. The mix of bubbling Sino-U.S. tensions, Brexit matters and negative Covid-19 vaccine news prompted the pair to wipe out an uptick into the London morning and tumble through the rest of the day.

• Statistics New Zealand released the nation's latest manufacturing sales data, with both value and volume registering low-double-digit declines.
• FinMin Robertson unveiled the ruling Labour Party's awaited tax policy proposals. The Minister pledged to introduce a new highest tax rate of 39% on any income above NZ$180,000, which would affect around 2% of earners. All other tax rates will remain the same. The policy, intended to generate NZ$550mn of revenue annually, is relatively limited in scope and New Zealand already had a 39% tax rate under the Clark Cabinet.
• The announcement comes as all parties are on the campaign trail ahead of the Oct general election. The main opposition National Party will reveal its infrastructure proposals today.
• The rate continued to head downwards this morning, before trimming losses, and last trades -6 pips at $0.6613. A clean breach of the 50-DMA at $0.6612 would open up Aug 20 low of $0.6489, a key near-term support. Bulls look for a rally above Sep 4 high of $0.6735, which would encourage them to target Sep 2/Jul 19, 2019 highs of $0.6789/91.
• New Zealand's preliminary ANZ Business Confidence Survey comes out later today. Looking further afield, card spending is due tomorrow, while food price index & BusinessNZ M'fing PMI hit the wires on Friday.