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

 


NZ dollar little changed; traders fret about US fiscal cliff

NZ dollar little changed as traders fret about US fiscal cliff, Australian capex looms

By Paul McBeth

Nov. 28 (BusinessDesk) - The New Zealand dollar was little changed in local trading as investors worry about US legislators' ability to prevent US$607 billion of tax hikes and spending cuts from kicking in next year, and ahead of Australian capital expenditure figures tomorrow.

The kiwi rose to 82.14 US cents at 5pm in Wellington form 81.95 cents at 8.30am and down from 82.25 cents yesterday. The kiwi increased to 78.56 Australian cents from 78.48 cents yesterday.

Stocks across Asia, with Japan's Nikkei 225 index down 0.8 percent, Hong Kong's Hang Seng index falling 0.9 percent and China's SSE Composite declining 0.7 percent as traders remain nervous about the strength of the US economy. Investors are mulling the consequences of talks in the US between the White House and House of Representatives on how to avert the so-called fiscal cliff which would plunge the world's biggest economy back into recession.

"Markets are looking at the fiscal cliff, which is just five weeks away now," said Alex Hill, currency strategist at HiFX in Auckland. For the kiwi to break out of its 80.50 US cents to 83.50 cents range, "we'll need to see something quite significant."

Markets shifted their focus back to the US after European policymakers agreed yesterday to a sweeter deal for Greece's 130 billion euro bail-out. The kiwi rose to 63.50 euro cents from 63.36 cents yesterday.

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.

Australian business investment rose 2 percent in the three months ended Sept. 30 after growing 3.4 percent in the previous quarter, according to a Bloomberg survey of economists.

The currency was almost unchanged at 51.30 British pence from 51.29 pence yesterday, and fell to 67.22 yen from 67.44 yen. The trade-weighted index was little changed at 73.46 from 73.50 yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Economic Update: RBNZ Says Rate Cut Seems Likely

The Reserve Bank will likely cut interest rates further as a persistently strong kiwi dollar makes it difficult for the bank to meet its inflation target, it said. The local currency fell. More>>

ALSO:

House Price Action Plan: RBNZ Signals National Lending Restrictions

The central bank wants to cap bank lending to property investors with a deposit of less than 40 percent at 5 percent and restore the 10 percent limit for owner-occupiers wanting to take out a mortgage with a deposit of less than 20 percent, according to a consultation paper released today. More>>

ALSO:

Sparks Fly: Gordon Campbell On China Steel Dumping Allegations

No doubt, officials on the China desk at MFAT have prided themselves on fashioning a niche position for New Zealand right in between the US and China – and leveraging off both of them! Well, as the Aussies would say, of MFAT: tell ‘em they’re dreaming. More>>

ALSO:

Loan Sharks: Finance Companies Found Guilty Of Breaching Fair Trading Act

Finance companies Budget Loans and Evolution Finance, run by former 1980s corporate high-flyer Allan Hawkins, have been found guilty of 106 charges of breaching the Fair Trading Act for misleading 21 borrowers while enforcing loan contracts. More>>

ALSO:

Post Panama Papers: Govt To Adopt Shewan's Foreign Trust Recommendations

The government will adopt all of the recommendations from former PwC chairman John Shewan to increase disclosure and introduce a register for foreign trusts with new legislation to be introduced next month. More>>

ALSO:

The Price Of Cheese: Cheddar At Eight-Year Low

Food prices decreased 0.5 percent in the year to June 2016, influenced by lower grocery food prices (down 2.3 percent), Statistics New Zealand said today. Compared with June 2015, cheese prices were down 9.5 percent, fresh milk was down 3.9 percent, and yoghurt was down 9.2 percent. More>>

ALSO:

Financial Advisers: New 'Customer-First' Obligations

Goldsmith plans to do away with the current adviser designations which he says have been "unsatisfactory" in that some advisers are obliged to disclose potential conflicts of interest and act in their customers' best interests, but others are not. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news