Common Nicknames for the Dollar Currencies

Just as many people have nicknames that their friends call them, all of the major dollar currencies and their primary traded currency pairs also have common friendly names. Interestingly, these nicknames often have some historical association with the currency or its issuing country that give the friendly name additional meaning for forex traders.

Along with various nicknames for the U.S. Dollar, each of the so-called commodity currency dollars of Australia, Canada and New Zealand has their own unique nickname as well.

The forex nicknames are also remarkably standardized in use among different countries, although some regional variations do exist. Market insiders and their clients often use these nicknames when talking and dealing among themselves, as do market commentators, so understanding what these names refer to can be very important for forex traders.

The following sections cover what the most common nicknames are for the major dollar currency or pair that is also further identified by its standard three letter ISO 4217 code or codes.

The United States' Dollar - USD

The currency of the United States is formally referred to as the U.S. Dollar, but forex traders call the world's primary reserve currency by a variety of colorful names.

These unique monikers go considerably beyond using just "the Dollar" since that can be confused with the currencies of other countries like Canada, Australia and New Zealand who also refer to their currencies as dollars.

The term Greenback has achieved particular popularity among forex market commentators when referring to the U.S. currency. This term has a long history, reaching all the way back to the Civil War era in America in the late 1800's when then-President Abraham Lincoln printed U.S. Demand Notes to finance the war.

These notes were printed in black ink on the front and green ink on the back, unlike most other currency notes of that era which had blank backs, thereby giving rise to the name.

To this day, U.S. Dollars are printed with green ink on their backs, keeping consistent with this traditional name for the currency.

Another popular forex market nickname for the U.S. Dollar, especially among forex traders themselves, is the "buck".  In fact, it would not be at all uncommon for an interbank forex trader to ask a broker or another professional counterparty for a price in "ten million bucks" or simply "ten bucks", meaning that they need a price in ten million dollars.

The Canadian Dollar - CAD

Forex commentators commonly refer to the Canadian Dollar as the "Loonie" after the picture of the Canadian national bird known as the Loon on the one C$ dollar coin.

Nevertheless, professional interbank traders will often ask for a price in "Funds" or "the Funds" when they wish to refer to USD/CAD.

This latter name arises due to the fact that the currency pair generally trades for value one business day in the future or for funds, not for value spot or two business days like most other currency pairs.

The Australian Dollar - AUD

The Australian Dollar is usually called the "Aussie", after the informal designation for someone hailing from Australia.

That same nickname is also shared by the AUD/USD currency pair, as well as the Australian Dollar.

The New Zealand Dollar - NZD

The New Zealand Dollar's popular nickname of the "Kiwi" refers to the country's national bird the Kiwi, which has its picture on the one N$ dollar coin.

As also noted with the Aussie above, the Kiwi nickname can refer to the currency of New Zealand, to the NZD/USD currency pair or to a native of New Zealand.