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

 

What Winter? Temperature Records Set For June 20-22

The days around the winter soltice produced a number of notably warm tempertaures. More>>

Conservation Deal: New Kākāpō Recovery Partnership Welcomed

Conservation Minister Maggie Barry says the new kakapo recovery partnership between DOC and Meridian Energy is great news for efforts to save one of New Zealand’s most beloved birds. More>>

ALSO:

Tech Sector Report: Joyce Warns Asian Tech Investors View NZ As Hobbits And Food

Speaking in Wellington at the launch of a report showcasing the value of the technology sector to the New Zealand economy, Joyce said more had to be done to tell the country's technology stories overseas. More>>

ALSO:

Mediaglommeration: APN Gets OIO Approval For Demerger Plan

APN News & Media has received Overseas Investment Office approval for its plan to split out its NZME unit ahead of a potential merger with rival Fairfax Media's New Zealand operations. More>>

New Paper: Ninety-Day Trial Period Has No Impact On Firms' Hiring

The introduction of a 90-day trial period has had no impact on hiring by New Zealand companies although they are now in widespread use, according to researchers at Motu Economic and Public Policy Research. More>>

ALSO:

Corrections: Serco Exits Equity Stake, Remains As Operator

Serco has sold its equity stake in the company that holds the contract to design, build and run Wiri Prison in South Auckland but continues as sub-contractor to operate the facility. More>>

GDP: NZ Economy Grows Faster-Than-Forecast 0.7%

New Zealand's economy grew at a faster pace than expected in the first quarter of 2016 as construction expanded at the quickest rate in two years. The kiwi dollar jumped after the data was released. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news