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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.
September 07, 2010 at 11:30 AM • Comment
The Japanese Yen rose 1.1% against the U.S. Dollar last week, showing fresh gains after the 15-year low of 83.57 that was made the previous week on August 24th.Read More
September 07, 2010 at 10:35 AM • Comment
For several months we have been warning of a potential collapse in the EuroZone that could unravel this fall as a result of sovereign debt problems resurfacing in the EuroZone. On Monday, the sovereign debt problems in the EuroZone...Read More
September 07, 2010 at 10:24 AM • Comment
On Friday, the NFP report beat market expectations quite nicely. The expected figure was -101k, but the actual figure came out at -54k, so less jobs were lost than expected. This good news caused investor sentiment to improve modestly...Read More
September 07, 2010 at 10:08 AM • Comment
U.S. markets are closed today which seems to have given some confidence to speculators around the world to load up on risky assets without the threat of a reversal in the NY session. A majority of markets are...Read More
September 03, 2010 at 10:35 AM • Comment
The U.K. released Services PMI during the London session Friday morning. The expected figure was 53.1, but the actual release disappointed slightly to the downside at 53.0. The purchasing Manager's Index is considered a leading indicator of economic health...Read More