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

 


NZ dollar gains as Boehner stokes optimism on fiscal cliff

NZ dollar gains as Boehner stokes optimism fiscal cliff will be averted, stocks rise

By Paul McBeth

Nov. 29 (BusinessDesk) - The New Zealand dollar gained after comments from US House of Representatives Speaker and senior Republican John Boehner stoked optimism policymakers will set aside their differences and bypass the fiscal cliff of US$607 billion in automatic tax hikes and spending cuts, stoking investor confidence and pushing stocks higher.

The kiwi dollar rose to 82.34 US cents at 8.30am in Wellington from 82.14 cents yesterday. The trade-weighted index advanced to 73.64 from 73.46.

Stocks on Wall Street rallied after Boehner said he was willing to put revenues up for negotiation if it was accompanied by spending cuts and that he was optimistic lawmakers could "avert this crisis sooner rather than later."

Investors have been fretting the world's biggest economy will be stuck in a stalemate similar to this year's debt ceiling debate that saw Standard & Poor's cut its triple-A credit rating, and ultimately slip back into recession. The Standard & Poor's 500 Index gained 0.4 percent.

Markets rallied after "some positive words from Boehner on trying to solve the fiscal cliff," said Tim Kelleher, head of institutional FX sales NZ at ASB Institutional in Auckland. "The kiwi should squeeze up on the day."

The currency may trade between 82.25 US cents and 82.75 cents, with a fall in commodity prices holding back gains, he said.

Traders will be looking for Australian capital expenditure figures today, 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 kiwi was little changed at 78.60 Australian cents from 78.56 cents yesterday.

The currency rose to 67.38 yen from 67.22 yen yesterday, and increased to 51.43 British pence from 51.30 pence. It advanced to 63.68 euro cents from 63.50 cents yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Real Estate: Housing Prices Head South In Most Of NZ

Housing became more affordable for first home buyers in many parts of the country including Auckland last month, as falling prices more than offset rising mortgage interest rates. More>>

ALSO:

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:

NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news