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| This article describes a currency traded on the global foreign exchange market. View articles referencing this currency. |
The New Zealand dollar (NZD) (also known as "Kiwi") is the official currency for New Zealand. It has the highest interest rate of the 8 major currencies but actually has lower turnover than the Swedish Krona, Hong Kong Dollar and Norwegian Krone according to the Bank of International Settlement’s 2007 Triennial FX survey[1].
The chart at left shows the USD/NZD currency pair; the number of New Zealand Dollar Dollar equivalent to 1 U.S. Dollar (USD).
Forex Market[1]
Trading HoursThe most active New Zealand Dollar trading hours are from the NZD Economic News (7:30 ET / 0:30 GMT) and US. Economic news (8:30AM ET/ 13:30 GMT).
(Listing the actual trading hours would be helpful here)
NZD/USD 10 Year Chart
Key Currency CrossesThe 3 key currency crosses are
Things to know when trading the New Zealand Dollar (NZD)AUD/USD and NZD/USD tend to move in line with each other as New Zealand’s economy is heavily dependent on Australian demand for products.
The New Zealand tends to trade in lockstep with the Australian dollar. Although the relationship could break on a short term basis, the following chart indicates that it is a very strong on a longer term basis.
Nickname – The nickname for the New Zealand dollar is the kiwi, a flightless bird that is endemic to New Zealand and is the country’s national symbol.
Central Bank - The Reserve Bank of New Zealand conducts monetary policy meetings 4 times a year and their decisions on interest rates could have significant ramifications for the currency market. Alan Bollard is the bank’s current Governor. He was appointed in 2002.
Most Active Trading Hours – We tend to see the most significant volatility in the New Zealand dollar when New Zealand or Australian economic data is released which is usually around the Tokyo open.
What Does the Economy Rely On? – The service sector is the largest sector of the New Zealand economy but the country also relies heavily on agricultural trade as exports can account for 24 percent of their output. New Zealand is a tiny country and therefore tourism is particularly important.
Who Does the Economy Rely on for Trade? – Do to the geographical proximity, New Zealand’s largest trading partner is Australia which explains the tight correlation between the Australian and New Zealand dollars.
Market Moving Economic Releases – Central bank rate decisions are usually the most market moving indicators, which mean that they can create the greatest volatility for any currency followed by the employment report, the consumer spending and inflation reports
The New Zealand Economy
Key FactsThe New Zealand Economy is comprised of 69.6% Services, 26% Industrial, and 4.4% Agriculture. It's largest trading partners are Australia, US, Japan, China, UK.. Some other key facts about the U.S. Economy:
General Economic Statistics| 2008 GDP Estimate | USD $135.7 Billion |
| Population | 4.2 Million |
| Interest Rate^ | 2.50% |
| Inflation^^ | 3.00% |
| Trade Balance^^ | NZD 324 Million |
^As of May 2009 ^^As of March 2009
Market Moving Economic Releases
References


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