GBPNZD (GBPNZD^)

Pairing – The amount of New Zealand dollars (NZD) that one can buy for every Great British pound (GBP).

Position

GBP – World’s fourth most traded currency

NZD - World’s eleventh most traded currency

Important factors

• History – The currency of New Zealand did not separate from the British pound until the 1930s, and then the New Zealand pound followed Australia’s lead, and became the New Zealand dollar in 1967, a year after Australia. The pound then appreciated consistently against the dollar until 2008.
• Commodities – Nearly half of New Zealand’s exports are farming related, so the price of agricultural produce can have a huge effect on the currency. Most of the trade that New Zealand has is with Asia and Australia, so the stability of these economies can also have an impact.
• Stability – New Zealand is not enjoying the same levels of robustness in their economy that Australia can boast, but the economy has stayed stable throughout the economic downturn.