NZD/USD
NZD/USD is considered the most attractive instrument for investors and traders who prefer long-term trading.
The pair includes the two most common currency pairs New Zealand dollar and US dollar.
If the US dollar is the first world currency, then the New Zealander is among the top ten currencies occupying global financial circulation.
NZD/USD is characterized by long trends and relatively low volatility, therefore, due to its predictability, almost all beginners are recommended to start with it.
I propose to familiarize yourself with each of the currencies in more detail in order to add up the common factors that influence the movement of the NZD/USD chart.
The NZD is the primary currency of New Zealand, issued by the Reserve Bank of New Zealand. It is considered a relatively new currency, as the country used British banknotes for a very long time.
In trader analysis articles, you'll often see "Kiwi" instead of the NZD. This nickname for the currency stems from the one-dollar coin featuring an image of the kiwi bird, New Zealand's national treasure. The NZD is considered a commodity currency because it exports various raw materials in significant quantities.
However, globally, New Zealand is considered a major exporter of agricultural products, and export revenues account for a significant portion of the country's income. Unlike many countries, New Zealand's agricultural sector is not government-controlled, so thanks to the constant advancement of cutting-edge technology, it competes freely on the global stage.
When analyzing the NZD, it's important to consider crop yield data, weather conditions, and agricultural export data. New Zealand has developed dairy farming very actively, so many traders base their forecasts on milk powder prices. It's also important to remember that New Zealand is a major tourist destination, so data on increases or decreases in tourist numbers always has a strong impact on the NZD.
The country is also rich in minerals, including gold and oil, so changes in commodity prices often affect the NZD. When analyzing the currency pair's movements, it's important to pay attention to news from key trading partners, namely Australia, the United States, and Japan. Key macroeconomic indicators such as GDP, unemployment, business activity, and the trade balance .
The USD is the primary global currency and the national currency of the United States.
The dollar is influenced by a wide range of factors, but the most important are US macroeconomic indicators such as GDP , the balance of trade, and unemployment. The US is also considered an industrial powerhouse, so any news related to the industrial sector has a significant impact on the dollar exchange rate.
In addition to macroeconomics, it is necessary to pay special attention to the statements of key politicians, since as a result of their statements, investors react extremely sharply to positive or negative information.
To successfully forecast the NZD/USD currency pair, it's necessary to take a comprehensive approach to analyzing the two countries' key indicators. However, it's important to understand that NZD/USD is characterized by long-term trends, so using long-term strategies on this instrument is considered the most productive approach.
