Live and Historical AUD/NZD Rates
This chart represents the relationship between the aussie dollar (AUD) and the New Zealand dollar (NZD) – how many NZD can buy one AUD. The New Zealand dollar is also known as the “kiwi” or “kiwi dollar.” While AUD is a major currency, NZD is not. Together, they form neither major nor commodity pair
The Australian Dollar
Australia replaced the Australian Pound with the aussie dollar and introduced the country’s first decimalized currency in 1966. The aussie dollar has had a floating currency value since 1983, and its value has consistently run just under the American dollar. High interest rates and minimal government interference makes AUD a favorite among currency traders. Australia remains one of the most highly developed nations in the world, but surprisingly it functions quite independently of other industrialized nations. This gives the aussie dollar unique diversification opportunities with neighboring Asian countries. Australia’s prime trade partners include South Korea, India, China, and Japan.
The New Zealand Dollar
The kiwi dollar was introduced to the world market in 1967.The kiwi’s value was pegged to the US dollar at that time. Since 1985, the kiwi has been a floating currency. It is the twelfth most commonly traded currency. As a small currency with heavy dependence on international trade, the kiwi’s value is heavily influenced by fluctuating international interest rates, and significant spikes or subsequent drops in value can be expected. A prime example of this fluctuation took place in the early 2000s. The kiwi is a decimalized currency; however, the smallest denomination of coins for the kiwi is 10 cents. The kiwi is used in four countries other than New Zealand.
Australia and New Zealand have an obvious geographic relationship, and they are trading partners. However, their industries are largely distinct, and NZD is more international in scope than AUD. The primary influence on NZD is the agriculture and food market, while AUD is influenced by commodity markets. Both currencies are influenced by JPY, but NZD is impacted more by the US dollar than AUD is. Interest rates in the two countries have tended to move in tandem, and carry trades are usually unprofitable as a result. The best way to profit from this pair is with any changes in the heavy commodity or agriculture markets.
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