The New Zealand dollar is the national currency of New Zealand and its related islands. The New Zealand dollar is one of the eight major currencies in the international Forex currency market. Forex traders call it “Kiwi” as well. The currency pair of New Zealand dollar to USD (NZD/USD) is one of the most common pairs in the international Forex currency market. About 1,6% of all transactions in the Forex market are executed daily with NZD/USD.
The New Zealand dollar is mainly dependent on factors such as the cost of dairy products, sheep’s wool, meat, and wood.
Currency fluctuations are directly affected by exports.
The volatility of the USD to New Zealand dollar pair is not high; daily fluctuations rarely exceed 100 points.
There is a direct correlation with the AUD/USD asset (the Australian dollar to the American dollar).
The main partners of New Zealand are the USA, Australia, and the countries of the Asian region, so it makes sense to keep track of news from these regions.
The rate of the New Zealand dollar is mostly dependent on the cost of milk. That is, if you look at the graph of the price of milk, you can see a direct correlation with the NZD/USD asset. New Zealand is a global supplier of this product, so nothing is surprising in this trend. In addition to milk, you also need to track the cost of sheep's wool. The price of sheep's wool is not a fundamental indicator but also plays a significant role. It is also necessary to track microeconomic news (GDP, interest rates in central banks of the USA and New Zealand, and so on). In general, follow the global economic calendar. This currency pair may be slightly affected by news from other countries, especially New Zealand's trading partners.
