NZDUSD (NZDUSD^)

Pairing – The amount of United States dollars (USD) that one can buy for every New Zealand dollar (NZD).

Position

NZD – World’s eleventh most traded currency

USD - World’s most traded currency

Important factors

• Economic factors – The US dollar is particularly susceptible to economic and financial news, due to the country’s position as the world’s largest economy. This includes national news, and international news relating to trading partners, those in Europe or Asia, for example.
• Commodities – There is little similarity between the commodities that affect the two currencies in this pairing. Precious metals, oil, and technology will have an impact on the US dollar, while the New Zealand dollar will tend to be more connected to agricultural products, such as wool and meat. That being said, the US agricultural sector is growing, as is becoming more influential over the value of the dollar.
• Manufacturing – Manufacturing makes up a very small percentage of New Zealand’s economy, while the US provides nearly 20% of the world’s total manufacturing output, meaning manufacturing is far more important to the US economy, and therefore the US dollar.