Sharechat Logo

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

Monday 7th January 2013

Text too small?

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)

BusinessDesk.co.nz



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

Government package for commercial leases too little, too late
Concerns over Government’s intervention in commercial leases
Development Commitment to Bowen Campus Stage Two
Vista Group International Limited - Update on the impacts of COVID-19
AFT secures Maxigesic IV® distribution in four Western European countries and reports Australasian market share gains in COVID-19 medicines
Investore Property Limited (Investore) today announced its financial results for the twelve months ended 31 March 2020 (FY20).
Rabobank GDT Analysis - Event 261
SkyCity Entertainment Group Limited - Update on COVID-19 Impacts and Recent Trading
ANZ announces sale of UDC Finance
Foley Wines Limited Announces Harvest Result, Earnings Outlook and Development in Martinborough

IRG See IRG research reports