NZD/USD – Live and Historical Rates

The NZD/USD pair is comprised of a major currency (the US dollar) and a non-major one, the New Zealand Dollar (Kiwi). While the two currencies are indeed correlated (at one point the NZD was pegged to the USD), the pair entails relatively low trading volumes. Thus the pair is not a major, nor is it a commodity one. The above chart depicts the amount of USD one needs to purchase a NZD.

The NZD

Currently used by 5 countries, the NZD is the national currency of New Zealand first and utmost. The other countries whose national currency it is are the Cook Islands, the Pitcairn Islands, Tokelau, Niue and the Ross dependency. The NZD is backed by an economy based on services, food processing and the export of agricultural products. Therefore, the value of the kiwi dollar is mostly influenced by agricultural price-swings. The NZD is also quite exposed to other currencies’ exchange- and interest rates.

The USD

The world’s most used, most traded and most popular reserve currency, the USD represents the very definition of a major currency. It serves as the national currency of the United States of a America, but it is used by scores of other countries, either officially or de-facto. The financial authority controlling the USD is the Federal Reserve, which accomplishes this task through the raising and lowering of interest rates. The US economy is powered by massive financial, manufacturing and energy sectors. As it stands right now, the dominance of the greenback is quite unbridled over the world markets.   

NZD/USD Analysis

The NZD is linked to the USD through the strong trade- ties between the two nations. Given the massive size-disparity between the two economies, most trading opportunities on this pair emerge as a result of NZD volatility. During the early 2000s, due to interest rate disparity, carry trading was sometimes profitable on the pair. That is no longer the case though.

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