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NZ dollar little changed as traders fret

Reported by AAP
Wednesday, November 28, 2012
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The New Zealand dollar was little changed in local trading as investors worry about US legislators' ability to prevent $US607 billion of tax hikes and spending cuts from kicking in next year, and ahead of Australian capital expenditure figures.

The kiwi rose to 82.14 US cents at 5pm in Wellington form 81.95 cents at 8.30am and down from 82.25 cents. The kiwi increased to 78.56 Australian cents from 78.48 cents.

Stocks across Asia, with Japan's Nikkei 225 index down 0.8 per cent, Hong Kong's Hang Seng index falling 0.9 per cent and China's SSE Composite declining 0.7 per cent as traders remain nervous about the strength of the US economy.

Investors are mulling the consequences of talks in the US between the White House and House of Representatives on how to avert the so-called fiscal cliff which would plunge the world's biggest economy back into recession.

"Markets are looking at the fiscal cliff, which is just five weeks away now," said Alex Hill, currency strategist at HiFX in Auckland.

For the kiwi to break out of its 80.50 US cents to 83.50 cents range, "we'll need to see something quite significant".

Markets shifted their focus back to the US after European policymakers agreed to a sweeter deal for Greece's 130 billion euro bail-out.

The kiwi rose to 63.50 euro cents from 63.36 cents on Tuesday.

Traders will be looking for Thursday's Australian capital expenditure figures, which are expected to show the world's 12th biggest economy might be starting to slow down after the resources boom gave it a buffer during the global financial crisis.

The currency was almost unchanged at 51.30 British pence from 51.29 pence, and fell to 67.22 yen from 67.44 yen. The trade-weighted index was little changed at 73.46 from 73.50.

16/09/2014 21:25Sydney, Australia. 16 September,2014
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