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

 


NZ dollar falls as focus shifts to fiscal cliff talks

NZ dollar falls as focus shifts to stalled negotiations to bridge US fiscal cliff

By Paul McBeth

Nov. 28 (BusinessDesk) - The New Zealand dollar fell as investors sharpened their focus on the stalled negotiations between US policymakers on how to prevent US$607 billion in automatic spending cuts and tax hikes, which may push the world's biggest economy back into recession.

The kiwi fell to 81.95 US cents at 8.30am in Wellington from 82.25 cents yesterday. The trade-weighted index declined to 73.39 from 73.50 yesterday.

Stocks on Wall Street declined in spite of good economic data as traders grew more pessimistic about legislators' ability to cut a deal and avert the so-called fiscal cliff. Two-thirds of Americans surveyed in a CNN poll fear the US will face severe economic difficulties if politicians in Washington can’t resolve their differences before the cuts and new taxes kick in on Jan. 1.

Markets shifted their focus to the US after European finance chiefs yesterday cut a deal to help reduce Greece's debt.

"The Greek thing was a positive but the market didn't run away with it because of the hang of the fiscal cliff," said Imre Speizer, market strategist at Westpac Banking in Auckland. "The kiwi will look at testing 81.65 US cents, which is the next big level."

The kiwi was little changed at 63.37 euro cents from 63.36 cents yesterday after European finance ministers reached accord over how to grant Greece its next tranche of rescue funds after official sector investors in the Mediterranean nation’s bonds, including the European Central Bank, balked on writing down their assets.

Traders will be looking for Australian capital expenditure figures tomorrow, which are expected to show the world's 12th biggest economy might be starting to slow down after the resources boom gave it a buffer during the global financial crisis. The kiwi was little changed at 78.45 Australian cents from 78.48 cents yesterday.

"If that's the case, then the RBA (Reserve Bank of Australia) might not just cut (the target cash rate) by 50 (basis points), but much more," Speizer said.

New Zealand's currency slipped to 51.15 British pence from 51.29 pence yesterday, and decreased to 67.39 yen from 67.44 yen.

(BusinessDesk)

© 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