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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.
July 29, 2010 at 4:31 PM • Comment
Traders are holding boldly to their gains instead of being told by news and data that they are not assessing events that well. Yesterday's durable goods data appears to have created not a lot of optimism, since it...Read More
July 29, 2010 at 9:50 AM • Comment
*United States* The U.S. Beige Book report came out Wednesday, and it served to further support Fed Chairman Ben Bernanke's view that the economy is hitting a period of significant slowdown. It is still difficult to gauge how bad...Read More
July 27, 2010 at 10:14 AM • Comment
The EUR/USD and GBP/USD have made incredibly strong moves to the upside in the month of July. In fact, the degree of momentum and volatility in the bullish rally in both of these pairs has caught many market...Read More
July 27, 2010 at 10:10 AM • Comment
Around the world, stock markets have been rallying today, while EURUSD has barely risen above the 1.30 mark, which may prove to be a major test of its resilience. We, on the other hand, suspect that the rally...Read More
July 26, 2010 at 4:45 PM • Comment
USDJPY gained overall last week in the absence of any major economic releases from Japan, with the exception of the BOJ's Monetary Policy Meeting Minutes from its June 14-15th meeting that were released on Tuesday. USDJPY began the...Read More