Using Unbounds stub-zone and NSD for local resolving does not work

I am having issues setting up Unbound as a general use DNS resolver and NSD as a local authoritive server. I intend to use Unbound as a replacement for my routers DNS server and would like to incorporate a range of private domains which may reference each other. Using Unbounds local DNS resolver via local-data and alike does not fulfill my needs; hence the need for NSD. My setup is that I have Unbound running on Port 53 and NSD on Port 10053 (listening only on localhost) on the same machine. My Unbound config:

server:
      # private and link-local subnets
      private-address: 10.0.0.0/8
      private-address: 172.16.0.0/12
      private-address: 192.168.0.0/16
      private-address: 169.254.0.0/16
      private-address: fd00::/8
      private-address: fe80::/10

      local-zone: "xe." transparent
      private-domain: "xe"

stub-zone:
      name: "xe"
      stub-addr: ::1@10053
      stub-addr: 127.0.0.1@10053

I won't go into details of my zone config for xe. but I can tell you that using dig -p 10053 .xe resolves just fine. Unbound resolves external domains like google.com without any problems. I just cannot seem to get this to work. Do you have any suggestions on how I might get this to work?