EXCHANGE RATE OF NZDUSD ON FOREX

Following the South Africa and Australia pattern, New Zealand get its independence only in the 1986.  However, New Zealand dollar was put into circulation in 1935. Little by little displacing the British pound from circulation, the NZD was finally adopted as the national currency by 1970.

NZD is called “kiwi” in the jargon of professional traders, such an exotic name stuck to this currency from the time when the image of a wingless kiwi bird was used on the dollar bills.

The NZD price depends on the market forces of supply and demand, the currency is no longer held in the “flat” due to the interventions. Creating a floating price rate in 1986 allowed including the NZD in the investment portfolios and actively speculating in Forex trading. At the moment, the currency is in the TOP-10 of the demanded ones.

The main reasons of the NZD popularity:

Due to annual and quarterly macroeconomic reports, the NZD price rate is easily forecast;

NZD has a good level of profitability;

New Zealand policy is focused on export and import, and on stable trade and economic relations with other countries.

The New Zealand dollar is considered to be one of the commodity currencies, which means that the NZD price depends largely on the market prices for raw materials.

The New Zealander fundamental factors

The trading volume of the NZD over the past five years has incredibly increased, and the percentage proportion relative to other currencies is considered to be 7%. Only for the 2019th year the NZD volumes decrease is clearly observed. The main reason why is the unstable situation in the commodity markets.

Fundamental factors affecting the NZD price rate:

Constant correlation with oil and precious metals;

Correlation with agriculture;

Correlation with the price of whole dried milk;

Seasonal entry of tourists, which can be up to 3 million tourists.

In addition, the correlation with the whole dried milk is due to the fact that for New Zealand it is the main product for export.

Price rates of the NZD / USD currency pair on real time

The online chart allows a trader to track price rate correlations between NZD and USD, and the professional traders use this tool to analyze the market situation. Settings of our charts are flexible and easy to configure. This allows a trader to make technical analysis without installing desktop versions of trading platforms.

The main advantages of the online price rates chart:

Data of the NZD/USD price are displayed every second with a minimum delay;

You can customize the time frame and display of the main chart;

Large historical stock of price rates;

Popular technical indicators.

One more advantage of using our charts is a comparative analysis of several currency pairs. The settings allow you to add to the chart - from three or more rates, and to identify the correlation dependence of the assets.

Features of trading the NZD / USD currency pair

The constant correlation with the commodity markets and some other commodity currencies makes it possible to effectively apply the fundamental analysis for the NZD / USD currency pair. Trading this currency pair is suitable for long-term and short-term traders, or traders who use the carry-trade strategy.

What you should pay attention to when analyzing the NZD / USD currency pair

to the correlation with the AUD / USD currency pair, which influences the NZD / USD price rate;

To the macroeconomic indicators of the USA and New Zealand (GDP, interest rate, sentiment and consumer price indices, unemployment rate, etc.);

To the value of agricultural products export.

With using the fundamental analysis with technical analysis, you may achieve good results in predicting the trend of the NZD / USD pair.

Additional tools of technical analysis

CRB Index: in most cases, the fall or rise of the CRB index influences the NZD / USD currency pair price. The index reflects the value of the goods that New Zealand exports.

Dairy Exchange: there is a  New Zealand stock exchange that is focused on trading options and futures for whole milk powder. Tracking rates for these tools also helps to predict the prices.

The Bureau Index reflects the magnitude of price inflation for milk, wool, wood and meat.

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