|Member Sentiment Bullish|
Live and Historical NZD/USD Rates
This chart shows the value of the New Zealand dollar (NZD) against the value of the United States dollar (USD) - that is how many USD can purchase one NZD. USD is a major currency while NZD is not. Though together NZD/USD do not make a major pair, they do form a commodity pair.
The New Zealand Dollar
The New Zealand dollar is the official currency for five nations. The major exports that support New Zealand's economy include services, food processing and agriculture. Unlike the US penny, and other micro-denominations, the smallest coin denomination in New Zealand is the 10 cent piece. NZD has a middle rating for most traded currencies with the consequence that it is heavily influenced by the way other currencies are traded and the interest rates other currencies have. As global markets fall, NZD pays the price with lower values and exchange rates. The primary trading partners are Australia and the US, though New Zealand also carries on moderate trade with Japan.
The U.S. Dollar
The US dollar is the most common currency used internationally. Commodities like oil and gold are traded exclusively in USD. Interestingly, more US dollars are held outside of the United States than within it. The dollar's value is very strictly controlled by the Federal Reserve. The major way USD is controlled is by raising and lowering lending interest rates. The American economy is dominated by the energy, manufacturing, and financial sectors. Despite its current strength and dominance in the world market, Alan Greenspan commented in 2007 that he believed a shift of power to the euro was entirely feasible.
Trade between New Zealand the US is very strong. Since the economy of New Zealand is very small relative to the US, traders usually profit best by watching for fluctuations in the kiwi dollar. At some periods, carry pairs have been possible between the two, such as in the early 2000's. However, it is not generally very common to make carry trades on the pair. The greatest window of opportunity usually comes from agriculture prices. Another significant factor is the condition of the Australian and Japanese economies, since these are major trading partners for New Zealand.
December 19, 2014 at 9:36 PM • Comment
*Key Fundamental Forex Events for the Week of December 15th through December 19th* The following table lists the key economic data and other events that came out during the week of December 15th through December 19th, with release times...Read More
December 16, 2014 at 2:46 AM • Comment
*USDCAD bull theme reinforced and re-energized*Read More
December 15, 2014 at 9:44 AM • Comment
*Key Fundamental Forex Events and Forecasts for the Coming Week* The following table lists the key economic data and other events that are due out during the week of December 15th – December 19th, with release times displayed for...Read More
December 15, 2014 at 9:38 AM • Comment
A rebound Friday, as expected, having held on Thursday on the dip above modest support at 1.2362 to leave a positive bias to the range environment.Read More
December 13, 2014 at 3:36 PM • Comment
*Key Fundamental Forex Events for the Week of December8th through December 12th* The following table lists the key economic data and other events that came out during the week of December8th through December 12th, with release times displayed for...Read More