Relation of the New Zealand to the U.S. dollar is one of the most interesting among all currency pairs. Although the NZD/USD is widely spread among traders, it has gained in popularity not so long ago. Today, the NZD/USD accounts for 10 percent of turnover in the foreign exchange market.
Professional traders call the NZD/USD as “Kiwi”.
The NZD/USD is a commodity currency pair. This is because the exchange rate of the NZD depends on export. The New Zealand dollar is significantly affected by the price of oil, metals etc. Besides, the currency is influenced by the New Zealand economy and political situation.
The New Zealand dollar (the code is NZD) is a national currency of New Zealand, Niue, Tokelau, Pitcairn, and Cook islands.
Analysis of the NZD/USD
The fundamental factors influencing the NZD include a change in the gross domestic product and consumer price index. Also, a trader needs to follow the statements and decisions of the Federal Reserve System of the United States and the Reserve Bank of New Zealand.
As New Zealand exports agricultural products, its national currency is impacted by a change in prices of agricultural commodities.They account for the largest part of all exported goods. By the way, New Zealand is the world’s largest lambswool producer.
Keep close track of the CRB (Commodity Research Bureau ) Index. Its changes influence the NZD/USD. The Bureau index shows the world current inflation, that is, a change in the cost of goods. More than half is exported from New Zealand and includes wool, meat, wood, and milk. The index rise is a positive factor and pushes up the national currency.
The New Zealand economy depends on crop yield which in turn is affected by weather conditions. Analyzing the NZD/USD, you need to have in mind long term weather forecasts.
Keep track of the trading relations between New Zealand and the United States, Japan, Australia, and other Pacific countries. This factor requires special attention. While analyzing it, you need to follow economic news of the above said countries.
The NZD/USD currency pair generally shows stability, smooth actions and medium volatility.
What distinguishes the NZD/USD from other currency pairs is that it can be easily and comprehensively analyzed. News releases almost always make the pair move up or down.
While performing analysis of the NZD/USD, you have to take into account the American factors affecting the price of the U.S. dollar.
One more factor is correlation between the NZD/USD and AUD/USD. These two currency pairs often show parallel movements. If you have in mind the factor, this can help you make a decent profit. The reason why the pairs move together is that they are affected by similar factors like prices of agricultural products and food. That is why there is direct correlation between the Australian and New Zealand dollar.
How to Make a Profit on the NZD/USD
To make money on the NZD/USD, you don’t necessarily need to go to the stock exchange. You can just buy binary options and get the highest return on any assets traded on the stock market.
To make a profit on binary options, you have to figure out whether the price will rise or drop during a certain period.
Binary options on the NZD/USD are available to buy from AnyOption. This well-known binary options broker is regulated by CySec and other EU institutions.
Anyone can make money on the NZD/USD using this pretty easy method. Options are the most simple and profitable financial instrument. Besides, a period for which you invest doesn’t matter, you get the same yield both if you invest, say, for a minute and an hour.
Anyoption offers many assets from different trading sessions like Morgan Stanley stock, Bombay 30, Samsung stock etc.