02 Jan TRADING EDUCATION: EUR NZD
The EUR NZD is known colloquially within forex trading as simply the “Euro-Kiwi”. Due to the fact that the New Zealand Dollar is informally known as the “Kiwi”, the flightless bird is a national symbol of New Zealand which appears on the 1 NZ$ coin.
The NZD can be meaningfully influenced by the fluctuations in the ANZ Commodity Price Index, The Global Dairy Trade Index and the Reserve Bank of New Zealand’s interest rate decisions. With both the ANZ Commodity Price Index and the Global Dairy Trade Index capable of causing significant movement within the EUR NZD.
This is especially true of the Global Dairy Trade Index as it is traditionally published once every two weeks at 14:15 GMT – as the markets move towards afternoon Americas trading.
As the largest economy to use the single currency, Germany is the nation whose economic data has the largest impact on the EUR. However, the Eurozone is primarily an industrial economy and as a result there is limited overlap between export markets.
The primary exports for the New Zealand Dollar consists of Dairy, Vegetables & Meat and Timber, whilst the Eurozone’s primary exports are Transport, Industrials and Chemicals.
With each half of the EUR NZD effectively behaving relatively autonomously, the EUR/NZD is often traded by more experienced traders who favour trend trading based on economic news and events in a more volatile market than the major pairs.