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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Banks: Westpac Keeps Core Government Transactions Contract

The local arm of Westpac Banking Corp has kept its contract with the New Zealand government to provide core transactions, but will have to share peripheral services with its rivals. More>>


Science Investment Plan: Universities Welcome Statement

Universities New Zealand has welcomed the National Statement of Science Investment released by the Government today... this is a critical document as it sets out the Government’s ten-year strategic direction that will guide future investment in New Zealand’s science system. More>>


Scouring: Cavalier Merger Would Extract 'Monopoly Rents' - Godfrey Hirst

A merger of Cavalier Wool Holdings and New Zealand Wool Services International's two wool scouring operations would create a monopoly, says carpet maker Godfrey Hirst. The Commerce Commission on Friday released its second draft determination on the merger, maintaining its view that the public benefits would outweigh the loss of competition. More>>


Scoop Review Of Books: She Means Business

As Foreman says in her conclusion, this is a business book. It opens with a brief biographical section followed by a collection of interesting tips for entrepreneurs... More>>


Hourly Wage Gap Grows: Gender Pay Gap Still Fixed At Fourteen Percent

“The totally unchanged pay gap is a slap in the face for women, families and the economy,” says Coalition spokesperson, Angela McLeod. Even worse, Māori and Pacific women face an outrageous pay gap of 28% and 33% when compared with the pay packets of Pākehā men. More>>


Housing: English On Housing Affordability And The Economy

"Long lead times in the planning process tend to drive prices higher in the upswing of the housing cycle. And those lead times increase the risk that eight years later, when additional supply arrives, the demand shock that spurred the additional supply has reversed. The resulting excess supply could produce a price crash..." More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news