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


NZ dollar holds near 81 US cents as fiscal cliff talks loom

NZ dollar holds near 81 US cents as fiscal cliff talks loom

Nov. 16 (BusinessDesk) – The New Zealand dollar traded at just above 81 US cents, having weakened this week as global risk aversion evaporated and stock markets weakened, while traders are awaiting any early news on the US fiscal cliff talks.

The kiwi dollar traded at 81.03 US cents at 5pm in Wellington from 80.95 cents at the start of the day and from 81.22 cents the previous day. The trade-weighted index was at 72.87, up from 72.80 at the start of the day.

US President Barack Obama and Republican lawmakers are due to meet this weekend to find a way to avoid the so-called fiscal cliff, a mix of tax increases and spending cuts that will kick in automatically on Jan. 1 and risk hampering the already-fragile economy. Global markets have become more risk averse this week with a run of weak global data and increased hostility in the Gaza Strip.

“The general pattern seems to be a reasonable amount of risk aversion on the market that has weighed on the Australian dollar and the kiwi,” said Chris Tennent-Brown, FX economist at Commonwealth bank of Australia.

The kiwi dollar is still broadly within its recent range of 81 cents to 83 cents, he said. In the near term, negotiations in the US over the fiscal cliff are likely to dominate. If agreement can’t be reached, there’s a risk the US economy falls back into recession and weighs on global growth, he said.

The kiwi dollar traded at 65.59 yen from 65.68 yen amid talk elections next month could install the main opposition party and lead to more concerted efforts to weaken Japan’s currency.

The New Zealand dollar traded at 78.40 Australian cents from 78.36 cents. It rose to63.45 euro cents from 63.35 cents and traded little changed at 51.07 British pence.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Sweet Health: Sugary Drinks Banned From Hospitals And Health Boards

All hospitals and DHBs are expected to kick sugary drinks out of their premises. University of Auckland researcher, Dr Gerhard Sundborn who also heads public health advocacy group “FIZZ”, says he welcomes the initiative. More>>


NASA: Evidence Of Liquid Water On Today's Mars

Using an imaging spectrometer on MRO, researchers detected signatures of hydrated minerals on slopes where mysterious streaks are seen on the Red Planet. These darkish streaks appear to ebb and flow over time. More>>


Bird Brains: Robins Can Just Be Generally Clever

Research from Victoria University of Wellington has revealed that birds may possess a ‘general intelligence’ similar to humans, with some individuals able to excel in multiple cognitive tests. More>>


Psa-V: Positive Result On Whangarei Kiwifruit Orchard

Kiwifruit Vine Health (KVH) has received a Psa-V positive test result on Hort16A and male vines on a kiwifruit orchard in Whangarei. This is the first confirmed case of Psa-V on an orchard in the Whangarei region. More>>

Regional Accents: Are Microbes The Key To Geographical Differences In Wine?

A new study of six of New Zealand’s major wine-growing regions has found that differences in flavour and aroma of wine from different areas may depend more on microbes than was previously thought. More>>


Science: AgResearch To Cut Science Staff In Areas Of 'Reduced Demand'

“We are therefore consulting with our staff from today on a proposal to reduce science staff in areas of shrinking demand. Combined with recruitment planned in areas of growing demand, this would mean a net reduction of 15 scientists and 41 technicians at AgResearch in the 2015/16 year." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news