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

 

ETS Review: Modelling Documents Released

Three technical documents are being released to help New Zealanders engage with the Emissions Trading Scheme (ETS) review, Climate Change Minister Paula Bennett says. More>>

ALSO:

Northland: Govt Plan Targets Transport, Web, Maori Assets

The government has released a 10-year plan to attract investors and lift economic growth in Northland, a region that perennially underperforms the rest of the country even while being endowed with natural beauty, productive land, minerals, a potential workforce, scope for manufacturing, forestry and aquaculture, and proximity to Auckland. More>>

ALSO:

Statistics: Unemployment Rate Falls To 5.3 Percent

The unemployment rate fell to 5.3 percent in the December 2015 quarter (from 6.0 percent), Statistics New Zealand said today. This is the lowest unemployment rate since March 2009. There were 16,000 fewer people unemployed than in the September ... More>>

ALSO:

Employment: Labour Urges Talley’s To End AFFCO Lockout

Labour has urged Talley’s to resolve the ongoing industrial dispute with AFFCO workers which is having a severe effect on the employees, their families and their communities, Labour’s Workplace Relations spokesperson Iain Lees-Galloway says. More>>

ALSO:

Three Kings: Govt To Oppose Appeal Blocking $1.2B Auckland Housing Plan

Environment Minister Nick Smith and Housing New Zealand have joined legal proceedings in support of Auckland Council and Fletcher Building opposing a bid by community groups to only allow low-rise housing in a $1.2 billion housing redevelopment on the disused site of the Three Kings quarry. More>>

ALSO:

Transport: Jetstar Expands Regional Network With Three New Routes

More New Zealanders than ever before will have access to Jetstar’s affordable flights when new services take off today from Auckland to New Plymouth and Palmerston North, and Nelson to Wellington. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news