Kiwi falls as stalled US talks sap risk appetite

Free audio stream, including stories that are padlocked on our site. Listen on any device, anywhere. Updated twice daily. The audio stream takes several seconds to start on Android devices.

Launch Radio player

The New Zealand dollar fell from a nine-month high amid concerns politicians in Washington are making no progress in talks to avert the fiscal cliff, countering the impetus growth assets got from the Federal Reserve's further quantitative easing and weighing on stocks.

The kiwi fell to 84.23 US cents from 84.40 cents at 5pm in Wellington yesterday. The trade-weighted index slid to 75.25 from 75.33 yesterday, having earlier reached a five-year high 75.47.

Hopes around the fiscal cliff – the $US600 billion of tax increases and spending cuts due to kick in on January 1 – faded after US House Speaker John Boehner said there had been a lack of progress in talks with the White House, which was "so unserious about cutting spending that it appears willing to slow-walk our economy right up to the fiscal cliff".

Sentiment was also dented after Standard & Poor's cut the outlook on the UK's crediting rating to negative.

"The euphoria over the Fed's latest round of quantitative easing was balanced by the impasse over US fiscal proposals," says Imre Speizer, a strategist at Westpac Banking Corp.

The Dow Jones Industrial Average fell 0.6 percent in afternoon trading and the Standard & Poor's 500 Index dropped 0.8 percent even as figures showed US unemployment claims fell more than expected to 343,000 last week, while retail sales rose and business inventories increased.

With no local economic data scheduled for today, traders will likely take their lead from China's HSBC flash manufacturing PMI for December and Japan's Tankan survey of companies for the fourth quarter.

The kiwi rose to 80.10 Australian cents from 80 cents yesterday and fell to 70.39 yen from 70.52 yen. It slipped to 64.41 euro cents from 64.52 cents and was little changed at 52.29 British pence.

(BusinessDesk)


This article is tagged with the following keywords. Find out more about MyNBR Tags

Comments & Questions

Commenter icon key: Subscriber Verified

Post New comment or question

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.

NZ Market Snapshot

Forex

Sym Price Change
USD 0.7680 0.0000 0.00%
AUD 0.9866 0.0000 0.00%
EUR 0.7101 0.0000 0.00%
GBP 0.5130 0.0000 0.00%
HKD 5.9663 0.0000 0.00%
JPY 91.3140 0.0000 0.00%

Commods

Commodity Price Change Time
Gold Index 1202.7 5.690 2015-04-17T00:
Oil Brent 63.5 1.740 2015-04-17T00:
Oil Nymex 55.7 -1.000 2015-04-17T00:
Silver Index 16.2 -0.050 2015-04-17T00:

Indices

Symbol Open High Last %
NZX 50 5881.8 5884.7 5881.8 -0.34%
NASDAQ 4966.1 4974.1 5007.8 -1.52%
DAX 11942.4 12019.8 11998.9 -2.58%
DJI 18102.6 18102.6 18105.8 -1.54%
FTSE 7060.4 7093.5 7060.4 -0.93%
HKSE 27808.2 27969.4 27739.7 -0.31%
NI225 19810.4 19815.2 19885.8 -1.17%