Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Fiscal Cliff spectre remains overriding theme

15.25 AEDT, Wednesday 14 November 2012

Fiscal Cliff spectre remains overriding theme

By Tim Waterer (Senior Trader, CMC Markets)

The Australian Dollar found support today via the 19 month high reading on Consumer sentiment. The AUDUSD made its way to 1.0450, with calmer conditions across Asian markets today supporting the risk-sensitive Aussie. Today’s Consumer sentiment reading was nearly the polar opposite to yesterday’s Business Confidence indicator, and overall it is still tough to gauge where we at in terms of another potential RBA cut over coming months. I suspect that the international picture will be the deciding factor here.

The AUD continues to perform well in the aftermath of last week’s non-action by the RBA. Amid all the avalanche of equity selling since the US election, the AUD has held up quite well even though the US Dollar remains popular buy against other currencies with so much risk aversion circulating in the market. The Euro hovering at two month lows speaks to this.

Perhaps exhausted after all the selling done on Tuesday, the Australian sharemarket had a more civilised performance today however caution was again the prevailing theme in the lead up to the US Fiscal Cliff deadline. Banking stocks were able to bounce back best after the heavy selling yesterday, with the financial sector helping to prop up the broader index amid softer showings elsewhere, with the energy sector again struggling.

But overall, investors still appear unwilling to venture into risk assets. The spectre of the Fiscal Cliff is serving to downplay financial market performance until such time as this colossal hurdle is overcome by Washington. In the meantime, downward shifts in the market will likely by sharper than any shifts to the upside whilst ever the chance of a double dip recession remains even a faint chance.

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

SOE Results: TVNZ Lifts Annual Profit 25% On Flat Ad Revenue, Quits Igloo

Television New Zealand, the state-owned broadcaster, lifted annual profit 25 percent, ahead of forecast and despite a dip in advertising revenue, while quitting its stake in the pay-TV Igloo joint venture with Sky Network Television. More>>

ALSO:

Insurers Up For More Payouts: Chch Property Investor Wins Policy Appeal In Supreme Court

Ridgecrest NZ, a property investor, has won an appeal in the Supreme Court over insurance cover provided by IAG New Zealand for a Christchurch building damaged in four successive earthquakes. More>>

ALSO:

Other Cases:

Royal Society: Review Finds Community Water Fluoridation Safe And Effective

A review of the scientific evidence for and against the efficacy and safety of fluoridation of public water supplies has found that the levels of fluoridation used in New Zealand create no health risks and provide protection against tooth decay. More>>

ALSO:

Scoop Business: Croxley Calls Time On NZ Production In Face Of Cheap Imports

Croxley Stationery, whose stationery brands include Olympic, Warwick and Collins, plans to cease manufacturing in New Zealand because it has struggled to compete with lower-cost imports in a market where the printed word is giving way to electronic communications. More>>

ALSO:

Prefu Roundup: Forecasts Revised, Surplus Intact

The National government heads into the election with its Budget surplus target broadly intact, delivering a set of economic and fiscal forecasts marginally revised from May to reflect weaker commodity prices and a lower tax take. More>>

ALSO:

Convention Centre: Major New SkyCity Hotel And Laneway For Auckland

Today SKYCITY Entertainment Group Limited revealed plans to build a new hotel and pedestrian laneway of bars, restaurants and boutique shopping on land it owns in the Nelson and Hobson Streets block, expanding the SKYCITY Entertainment Precinct. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news