The New Zealand dollar was little changed against the greenback as traders awaited developments on US budget talks, with the fiscal cliff deadline now just two days away.
The kiwi dollar traded at 81.94USc from 81.93USc in New York on Friday. The trade-weighted index was at 73.53 from 73.55.
President Barack Obama told NBC's Meet the Press in an interview on Saturday that he was "modestly optimistic yesterday, but we don't yet see an agreement."
Senate Democrats have rejected the Republican's latest offer on averting $US600 billion of tax hikes and spending cuts, Bloomberg reported, citing Senate Democratic aides close to the negotiations. Congress has until Monday midnight to reach an agreement.
The kiwi "is going to have more of an offered bias than a bid bias," said Tim Kelleher, head of institutional FX sales at ASB Institutional. The local currency will have "a slightly defensive tone" through until the end of the year though it has held up reasonably well given stocks on Wall Street sold off on Friday.
The New Zealand dollar may trade in a range of 81.75-82.25USc, he said.
The kiwi dollar traded at €0.6199 from €0.6198 in New York on Friday. Figures over the weekend showed a big drop in euro shorts, suggesting the market is easing off on bets the common currency will fall further.
The kiwi traded at 50.67p from 50.68p, fell to ¥70.36 from ¥70.53 and at 79Ac from 79.01Ac.
This article is tagged with the following keywords. Find out more about MyNBR Tags
Most listened to
- NBR's Rob Hosking with budget analysis. No lolly scramble but sweeteners aplenty
- Grant Thornton tax partner Murray Brewer with his take on the tax package
- NBR’s Calida Smylie talks to CTU policy head Bill Rosenberg in the Budget 2017 lock up
- OMF Financial’s Nigel Brunel discusses the economic implications of the Budget
- MetroGlass CEO Nigel Rigby on the outlook and market share position
- David Seymour gives Gareth Morgan a serve as the latest political party donations are disclosed
- NBR Radio: best of the week ended May 19, with Grant Walker