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

 


NZ dollar falls as Boehner bursts optimism over fiscal cliff

NZ dollar falls as Boehner bursts optimism over fiscal cliff

By Paul McBeth

Nov. 30 (BusinessDesk) - The New Zealand dollar fell after US House of Representatives Speaker and senior Republican John Boehner dashed optimism politicians were getting closer to avoiding the fiscal cliff.

The kiwi fell to 82.24 US cents at 8am in Wellington from 82.41 cents yesterday. The trade-weighted index declined to 73.58 from 73.74 yesterday.

Investors eschewed risk-sensitive currencies such as the kiwi and Australian dollars after Boehner said US President Barack Obama has to get "serious" about spending cuts and that "there is a real danger of going off the fiscal cliff." Boehner made the comments after speaking with Obama and Treasury Secretary Timothy Geithner over ways to avert the automatic US$607 billion in tax increases and spending cuts which kick in on Jan. 1.

"Investors were checking their optimism following the Boehner comments," said Mike Jones, currency strategist at Bank of New Zealand in Wellington. "That downbeat sentiment was reflected in the kiwi and Aussie."

The currency may trade between 82.10 US cents and 82.60 cents today, with investors looking at tomorrow's Chinese manufacturing figures, Jones said.

Recent Chinese data has painted an upbeat picture about industrial production in the world's second-biggest economy, and if that continues, the kiwi and Australian dollars may gain on Monday, he said.

The New Zealand dollar was little changed at 78.81 Australian cents from 78.75 cents yesterday as central banks on both sides of the Tasman prepare to review monetary policy next week.

Traders are pricing a 77 percent chance the 3.25 percent target cash rate will be trimmed, according to the Overnight Index Swap curve. New Zealand’s central bank, which also meets next week, is being given a 14 percent chance of a cut to its 2.5 percent official cash rate, meaning Australia’s yield advantage will probably narrow.

The currency slipped to 67.54 yen from 67.65 yen yesterday, and declined to 51.27 British pence from 51.45 pence. It fell to 63.38 euro cents from 63.63 cents yesterday.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news