NZD/USD Exchange rate
Editors’ Picks
EUR/USD struggles to gain traction, trades near 1.0800
EUR/USD finds it difficult to gather recovery momentum and trades near 1.0800 on Tuesday as the US Dollar benefits from the risk-averse market atmosphere. ECB President Lagarde's cautious remarks about inflation outlook helps the pair limit its losses.
GBP/USD extends slide after failing to reclaim 1.3000
GBP/USD loses its traction and trades in negative territory after failing to stabilize above 1.3000 earlier in the day. The souring market mood doesn't allow the pair to stage a decisive rebound as the market focus remains on geopolitics and central bank speak.
Gold continues uptrend toward $2,750 as Middle East conflict rages on
Gold continues its uptrend and trades near the record-high it set at $2,740 as the conflict in the Middle East remains unabated, while markets assess the changing outlook for global interest rates. Technically, XAU/USD trends higher as a multi-time-frame uptrend extends.
Bitcoin dips below $67,000 as holders book profits
Bitcoin continues to trade in the red on Tuesday after facing rejection around the $70,000 level on Monday. Despite the price decline, institutional investors capitalized on the recent dips, with the US spot Exchange Traded Funds recording over $297 million in inflows.
Trump vs Harris – What it means for US-China relations
Democrats and Republicans agree on few things, but that China is the primary foreign policy threat is one of them. Both sides believe China has a long term goal of supplanting the US as the leading power in the world but while they agree on the threat, they differ on how to deal with it.
Majors
Cryptocurrencies
Signatures
NZD/USD, THE “KIWI”
The NZD/USD currency pair, also called the “Kiwi”, tells the trader how many US dollars (the quote currency) are needed to purchase one New Zealand dollar (the base currency). Together with the Australian Dollar and the Canadian Dollar, the NZD is a commodity currency, that is a currency whose country's exports are largely comprised of raw materials (precious metals, oil, agriculture, etc.).
Along with the Australian Dollar, the NZD has been for many years a traditional vehicle for carry traders, which has made this currency also very sensitive to changes in interest rates.
HISTORIC HIGHS AND LOWS FOR NZD/USD
- All-time records: Max : 1.49 on 5/11/1973 - Min: 0.3962 on 16/10/2000
- Last 5 years: 0.7737 on 27/04/2015 - Min: 0.65794 on 20/08/2015
* Data as of February 2020
ASSETS THAT INFLUENCE NZD/USD THE MOST
- Currencies: AUD, CNY and YEN (Australia, China and Japan are important regional partners of New Zealand). This group also includes the following currency pairs: EUR/USD, GBP/USD, USD/JPY, AUD/USD, USD/CHF, USD/CAD, GBP/JPY and EUR/JPY
- Commodities: First of, coal. New Zealand has extensive coal resources: coal accounts for about 10% of New Zealand’s primary energy (excluding transport fuels). Other important commodities are Silver and Iron Ore.
- Bonds: GNZGB10 (New Zealand Govt Bond 10 Year) and AGB (debt securities issued by the Australian Government) and T-NOTE 10Y (10 year United States Treasury note).
- Indices: NZX (New Zealand Exchange), ASX (Australian Securities Exchange) and Nikkei 225 (a stock market index for the Tokyo Stock Exchange).
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE NZD/USD
The organizations and people that affect the most the moves of the NZD/USD pair are:
- Reserve Bank of New Zealand (RBNZ), the central bank of that country. It was established in 1934 and is constituted under the Reserve Bank of New Zealand Act 1989. The Governor of the Reserve Bank is responsible for New Zealand's currency and operating monetary policy. The Bank's current Governor is Adrian Orr.
- New Zealand Government (whose Prime Minister is Jacinda Ardern) and its Ministry of Business, Innovation and Employment (MBIE) that implement policies that affect the economy of the country.
- Asia-Pacific Economic Cooperation (APEC), forum for 21 Pacific Rim member economies that promotes free trade throughout the Asia-Pacific region.
- The US Government (and its President Joe Biden): events as administration statements, new laws and regulations or fiscal policy can increase or decrease the value of the US Dollar and the currencies traded against it, in this case the New Zealand Dollar.
- Fed, the Federal Reserve of the United States whose president is Jerome Powell. The Fed controls the monetary policy, through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.
In terms of economic data, as for most currencies, the NZD/USD traders have to keep an eye on:
- GDP (Gross Domestic Product), the total market value of all final goods and services produced in a country. It is a gross measure of market activity because it indicates the pace at which a country's economy is growing or decreasing. Generally speaking, a high reading or a better than expected number is seen as positive for the NZD, while a low reading is negative.
- Inflation measured by key indicators as the CPI (Consumer Price Index) and the PPI (Production Price Index), which reflect changes in purchasing trends.