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

 


NZ dollar holds above 83 cts as fiscal cliff euphoria abates

NZ dollar holds above 83 US cts as fiscal cliff euphoria abates

By Paul McBeth

Jan. 3 (BusinessDesk) - The New Zealand dollar held above 83 US cents in local trading today after global market euphoria abated on US politicians averting the US$600 billion fiscal cliff during the New Year holiday.

The kiwi rose to 83.21 US cents at 5pm in Wellington from 83.02 cents at 8am, and was down from 83.73 cents yesterday in Asia. The trade-weighted index decreased to 74.75 from 74.96.

Markets around the world rallied yesterday after US politicians reached a budget agreement of sorts to prevent automatic spending cuts and tax increases which would push the world's biggest economy back into recession.

That optimism has been tempered as investors now prepare for politicians to figure out where the spending cuts will come, and how they will address another looming debt ceiling. The US had its triple-A credit rating cut by Standard & Poor's in 2011 over politicians' inability to make meaningful progress on the debt ceiling.

"We're now on the ledge waiting for the next cliff the politicians have made for themselves," said Mike Jones, currency strategist at Bank of New Zealand in Wellington. "The good news is priced in and the risk is now for the kiwi to dribble lower."

New Zealand's currency gained in local trading after dairy prices rose 2 percent at the latest GlobalDairyTrade auction. The average winning trade-weighted price increased to US$3,357 per metric tonne from US$3,311/tonne at the Dec. 19 sale.

The kiwi fell to 72.57 yen at 5pm in Wellington from 73.05 yen yesterday, and declined to 79.37 Australian cents from 79.87 cents. It advanced to 63.31 euro cents from 63.02 cents yesterday and was little changed at 51.28 British pence from 51.37 pence.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

BusinessDesk: APN's NZME Sees Future In Paywalls, Growth In Digital Sales

APN News & Media has touted a single newsroom concept for its NZME unit in New Zealand, similar to what Germany's Die Welt uses, saying an 'integrated sales proposition' is helping it win market share, including ... More>>

Labour Party: Global Milk Prices Now Lowest In 6 Years

The latest fall in the global dairy price has brought it to the lowest level in six years and shows there must be meaningful action in tomorrow’s Budget to diversify the economy, says Labour’s Finance spokesperson Grant Robertson. “Dairy prices ... More>>

BusinessDesk: NZ Inflation Expectations Creep Higher In June Survey

May 19 (BusinessDesk) - New Zealand businesses lifted their expectations for inflation over the next two years, sapping any immediate pressure on the Reserve Bank to cut interest rates, and prompting the kiwi dollar to jump higher. More>>

BusinessDesk: Lower Fuel Costs Drive Down NZ Producer Input, Output Prices

May 19 - Producer input and output prices fell in the first quarter, mainly reflecting lower fuel costs and weakness in prices of meat and dairy products. More>>

Media: Fairfax Media NZ Announces Senior Editorial Team

Fairfax Media New Zealand has today confirmed its new editorial leadership team, as part of a transformation of its newsrooms aimed at enhancing local and national journalism across digital and print. More>>

Science: Flavonoids Reduce Cold And Cough Risk

Flavonoids reduce cold and cough risk Research from the University of Auckland shows eating flavonoids – found in green tea, apples, blueberries, cocoa, red wine and onions – can significantly reduce the risk of catching colds and coughs. The research, ... More>>


BusinessDesk: RBNZ House Alert Speech The Catalyst For Government Action

Prime Minister John Key all but conceded that pressure from the Reserve Bank of New Zealand for concerted action on rampant Auckland house prices was one of the main catalysts for the government's weekend announcements about tightly ... More>>

BusinessDesk: How To Fall Foul Of The New Housing Tax Rules: Tips From IRD

Just because you rented out your investment property doesn't absolve you from paying tax, says the Inland Revenue Department in a summary of commonly made mistakes by non-professional property investors when it comes to their tax liability.More>>

Legal: Superdiversity Law, Policy And Business Stocktake Announced

Mai Chen, Managing Partner at Chen Palmer New Zealand Public and Employment Law Specialists and Adjunct Professor of Law at the University of Auckland, today announced the establishment ... More>>

Housing: More House Price Gains Expected

House price expectations remain high, with a net 56% of respondents expecting house prices will increase. Fears of higher interest rates are fading, consistent with the RBNZ’s signals this year. Affordability and a lack of houses for ... More>>

TDDA: State-Of-The-Art Drug Testing Laboratory To Open In Auckland

World leading drug testing agencies, The Drug Detection Agency (TDDA) and Omega Laboratories, open New Zealand laboratory More>>

Network: Bigpipe Launches Ultra-Fast Broadband Into Wellington

Bigpipe Launches Ultra-Fast Broadband into Wellington Naked broadband provider Bigpipe has extended its national reach, announcing today, the launch of its unlimited UFB offering into Wellington. The Spark Venture business is giving Wellingtonians the ... More>>

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news