Bloomberg News

Australian, New Zealand Dollars Pare Gains on European Discord

December 13, 2011

Dec. 13 (Bloomberg) -- The Australian and New Zealand dollars pared gains against their U.S. counterpart amid concern European leaders won’t agree how to solve the region’s debt crisis.

Global stocks erased gains after Chancellor Angela Merkel told German coalition lawmakers that the 500 billion euro ($654 billion) cap on Europe’s planned permanent bailout fund will stay in place, two officials with knowledge of the discussion said. The South Pacific currencies gained earlier amid optimism about the U.S. economic recovery as retail sales rose.

“We just need the situation in Europe to stabilize,” said Adam Carr, a senior economist in Sydney at ICAP Australia Ltd., a unit of the world’s biggest interdealer broker. “The U.S. economy is much better than people were predicting only a couple of months ago.”

New Zealand’s currency was little changed at 76.32 U.S. cents at 12:10 p.m. New York time. It earlier rose as much as 0.6 percent to 76.75. It fetched 59.42 yen from 59.45.

The Australian dollar traded 0.1 percent stronger $1.0084, down from as strong as $1.0163. The Aussie was 0.1 percent higher at 78.52 yen.

The MSCI World Index fell 0.1 percent after gaining as much as 0.8 percent.

Australia’s government bonds advanced, with the yield on the 10-year note falling 8 basis points, or 0.08 percentage point, to 3.80 percent. It reached 3.78 earlier, the lowest since at least September 1992 when Bloomberg began compiling data.

A National Australia Bank Ltd. survey today showed that Australian business confidence was unchanged in November. The confidence index was 2 last month, the same as in October, according to the poll of about 550 companies conducted Nov. 21-S25.

--Editors: Kenneth Pringle, Dave Liedtka

To contact the reporter on this story: Mariko Ishikawa in Tokyo at mishikawa9@bloomberg.net

To contact the editor responsible for this story: Rocky Swift at rswift5@bloomberg.net


Too Cool for Crisis Management
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus