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

 


NZ dollar little changed before Greek, US fiscal cliff talks

NZ dollar little changed as markets await Greek talks, US fiscal cliff negotiations

By Paul McBeth

Nov. 26 (BusinessDesk) - The New Zealand dollar was little changed in local trading as investors awaited a meeting on EU policymakers that would grant Greece its next round of financial aid and talks between US legislators to bridge the fiscal cliff of US$607 billion in spending cuts and tax hikes.

The kiwi traded at 82.40 US cents at 5pm in Wellington from 82.28 cents this morning and unchanged from the Friday close in New York. The trade-weighted index was 73.73 from 73.68 last week.

European finance chiefs are set to resume talks on Monday in Brussels to try and forge agreement on securing the next tranche of rescue funds for Greece, which was forced to seek help after taking on too much debt. On the other side of the Atlantic, White House officials and Congress representatives will renew talks to try and prevent automatic spending cuts and tax increases coming into effect from Jan. 1.

A deal by the European finance chiefs "should be market friendly which would push the kiwi higher," said Imre Speizer, market strategist at Westpac Banking Corp in Auckland. "The Europeans don't want to throw big money, but they seem to be willing to throw a little money now, knowing it's gone for good, but they don't want it to blow up right now."

New Zealand's currency may gain this week, according to five of six strategist surveyed by BusinessDesk, trading in a range of 80.50 US cents to 83.50 cents.

Speizer, who is picking a gain, said he expects the kiwi will test the top side of the range.

Traders will watch the Reserve Bank's survey of expectations tomorrow to see where New Zealand financial institutions see inflation going.

The New Zealand dollar traded at 63.57 euro cents from 63.49 cents last week and increased to 51.42 British pence from 51.36 pence. The kiwi was unchanged at 78.74 Australian cents and traded at 67.77 yen from 67.85 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Interest Rates: Wheeler Hikes OCR To 3% On Inflationary Pressures, Eyes Kiwi

Reserve Bank governor Graeme Wheeler lifted the official cash rate for the second time in as many months, saying non-tradable inflationary pressures were "becoming apparent" in an economy that’s picking up pace and he's watching the impact of a strong kiwi dollar on import prices. More>>

ALSO:

Scoop Business: Equity Crowd Funding Carries Risks, High Failure Rate

Equity crowd funding, which became legal in New Zealand this month, comes with a high risk of failure based on figures showing existing forays into social capital have a success rate of less than 50 percent, one new entrant says. More>>

ALSO:

Scoop Business: NZ Migration Rises To 11-Year High In March

The country gained a seasonally adjusted 3,800 net new migrants in March, the most since February 2003, said Statistics New Zealand. A net 400 people left for Australia in March, down from 600 in February, according to seasonally adjusted figures. More>>

ALSO:

Hugh Pavletich: New Zealand’s Bubble Economy Is Vulnerable

The recent Forbes e-edition article by Jesse Colombo assesses the New Zealand economy “ 12 Reasons Why New Zealand's Economic Bubble Will End In Disaster ”, seems to have created quite a stir, creating extensive media coverage in New Zealand. More>>

ALSO:

Thursday Market Close: Genesis Debut Sparks Energy Rally

New Zealand stock rose after shares in the partially privatised Genesis Energy soared as much as 18 percent in its debut listing on the NZX, buoying other listed energy companies in the process. Meridian Energy, MightyRiverPower, Contact Energy and TrustPower paced gains. More>>

ALSO:

Power Outages, Roads Close: Easter Storm Moving Down Country

The NZ Transport Agency says storm conditions at the start of the Easter break are making driving hazardous in Auckland and Northland and it advises people extreme care is needed on the regions’ state highways and roads... More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news