Labour leader Jacinda Ardern, 37, becomes New Zealand Prime Minister

NZ First leader Winston Peters arrives at Wellington airport on Monday morning to meet with his board as coalition talks

Kevin Stent NZ First leader Winston Peters arrives at Wellington airport on Monday morning to meet with his board as coalition talks continue

"We wish the new Government well in taking the opportunity we have to build on the economic strength but also deal with longstanding issues that New Zealanders want to see dealt with".

Asked by a journalist if she could trust Ardern, Bishop said: "The fact is Ms Ardern gave an explanation a couple of months ago about the behaviour of a New Zealand member of the Labour Party and she said at the time that his conduct is wrong, it was unacceptable and it should never have happened and that he shouldn't have become involved".

The small New Zealand party holding the balance of power after inconclusive elections will announce on Thursday which party it will back in government, ending weeks of political limbo that have hurt the currency and business sentiment.

The charismatic 37-year-old first had to win over voters to restore her centre-left Labour Party as a credible force in the September 23 election.

NZD/USD reaction to opinion polls before the vote suggested that a return of the incumbent, National-led government was the bulls' preference.

"The majority of this country has voted for the change that is happening", Mr Peters told a briefing in Wellington.

In the final results count, National picked up 56 seats, Labor 46, and the Greens eight. Earlier this year Emmanuel Macron was elected President of France at the age of 39, and just this week, 31-year-old Sebastian Kurz emerged as Austria's next Prime Minister after national elections.

Ardern will become the country's second-youngest prime minister and the third woman to hold the top job. It was Wong's chief of staff who sparked the New Zealand Labour questioning that led to the revelations about Joyce's status as a dual citizen of Australia and New Zealand.

Both Prime Minister Turnbull and Bishop have since commented on Ardern's rise, with a spokesperson for Turnbull telling HuffPost Australia that he sent her a text message on Thursday afternoon congratulating her for the victory.

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In the same year, the latest round of Israeli-Palestinian talks collapsed. "A Palestinian government must dismantle the terror organizations and recognize Israel".

Ms Ardern's rise to the prime ministership could prove hard for Australia's Foreign Minister Julie Bishop, who said she would find it "very difficlt to build trust" with a New Zealand Labour government back in August.

In her first statement following the news, Ardern said "this is an exciting day".

"I have been utterly transparent about the situation".

The caucus and the board are expected to sign off an agreement without knowing whether it will be implemented.

While Ms Ardern was not given the good news in advance Mr English was also not given a heads up of his defeat.

The kiwi dropped as low as US70.62c and was trading at 70.65c as at 7.15pm from 70.94c before he started his briefing.

On policy concessions, Mr Peters confirmed he expected the Reserve Bank Act to change, and that he anticipated there would be "fewer people coming here".

Peters thrashed out policy positions over 12 days of negotiations and said he only made his decision 15 minutes before making it public.

It could be a full coalition Government with NZ First ministers inside Cabinet, or a looser support agreement with ministers outside Cabinet.

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