02 Jan TRADING EDUCATION: AUD NZD
The AUD is known on trading floors as the Aussie Dollar. Whilst the NZD is widely referred to as the Kiwi after New Zealand’s national birds. Because both halves of the currency pair have their own nicknames the AUD NZD is known colloquially within forex trading assembly as the AUD/NZD.
The AUD NZD cross represents the two Australasian currencies, which although when paired with the major reserve currency’s form a commodity pair or a cross pair. When combined with each other form nether instead making up what is classed as an exotic pair. Primarily due to their close geographical locations and high rollover rates the AUD NZD.
As a result, the AUD NZD tends to be primarily influenced by in the local economies of the Australasian economy’s, and is not heavily affected by risk-trends or global factors. The primary influence on NZD is the agriculture, food and milk markets, while AUD is influenced by commodity markets.
Both currencies within the AUD/NZD are influenced by JPY, but NZD is impacted more by the US dollar than AUD is. Interest rates in the two countries have tended to move in tandem, and carry trades are usually unprofitable as a result. However, the best way to profit from this pair is usually with any changes in the heavy commodity or agriculture markets.