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

 


NZ dollar little changed as US debt ceiling eyed

NZ dollar little changed above 83 US cents as debt ceiling eyed

Jan. 7 (BusinessDesk) – The New Zealand dollar was little changed above 83 US cents as the US debt ceiling remains in focus and with little local data to drive the currency forward.

The New Zealand dollar traded at 83.08 US cents from 83.18 cents in New York on Friday. The trade-weighted index eased to 74.88 from 74.99.

On Saturday, US President Barack Obama said in his weekly video address that there could be “catastrophic” consequences for the global economy if the Congress doesn’t agree to lift the US$16.4 trillion debt ceiling, with temporary measures to allow the US to pay its bills due to expire in mid-February. Meanwhile, economic data is relatively favourable, with the US economy adding 155,000 jobs last month while the unemployment rate held at 7.8 percent.

“The fundamentals underpinning the NZD haven’t changed; the grinding NZ economic recovery is well placed to continue, NZ commodity prices are trending higher, and the global economy is past the worst,” said Mike Jones, strategist at Bank of New Zealand. “As long as these supportive factors remain in play, NZD/USD dips towards 0.8000 will be short-lived in our view.”

“In the short-term, we suspect the NZD/USD will continue to trade at the whim of offshore risk appetite and equity market sentiment,” he said.

The Standard & Poor’s 500 Index rose 0.5 percent to close at 1466.47 on Friday, the highest in five years.

The kiwi dollar traded at 63.52 euro cents from 63.58 cents and was at 51.67 British pence from 51.77 pence. It eased to 79.26 Australian cents from 79.35 cents and traded at 73.22 yen from 73.29 yen.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news