02 Jan TRADING EDUCATION: NZD USD
The NZD USD currency pair is often called ‘The Kiwi’, as the $1 coin of the currency depicts a kiwi bird. It is one of the 10 most-traded currencies in the world, and gained considerable appeal during the multi-decade commodity.
The NZD USD can be heavily affected the interest rate differential between the Reserve Bank of New Zealand (RBNZ) and the Federal Reserve (Fed) will affect the value of these currencies when compared to each other.
New Zealand’s economy is centred around its export market, as a country it is rich in natural resources and is a major exporter of goods including timber, meat, fish, fruit, wool and dairy items. Because of this the commodity prices can also have a significant impact on the value of NZD, this is especially true of Dairy and timber prices.
In the case of the USD the USA is a major exporter of precious metals, oil and petroleum in terms of commodity’s. However, the USA is also a primary exporter of high-tech services, industrial supplies, medical equipment and pharmaceuticals
The NZD USD tends to have a positive correlation to the AUD USD, EUR USD and GBP USD currency pairs. This is because of the positive correlation of the New Zealand dollar to the euro, the British pound and the Australian dollar.