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.
NZD is the main currency of New Zealand, which is issued by the Reserve Bank of New Zealand. This currency is considered relatively young, since British banknotes circulated in the country for a very long period of time.
In analytical articles by traders, you can often see “Qiwi” instead of NZD. This currency got its nickname due to the fact that the one-dollar coin bears the image of the Kiwi bird, which is the national treasure of New Zealand. NZD is considered to be a commodity currency, because various raw materials are exported in significant quantities.
However, on the world stage, New Zealand is considered the largest exporter of agricultural products, and revenue from its exports takes up a significant part of the country's income. Unlike many countries, the agricultural industry in New Zealand is not state-controlled, so the industry competes freely on the world stage thanks to the constant development of advanced technologies.
When analyzing NZD, it is necessary to take into account data on yields, weather conditions, as well as data on the export of agricultural products. New Zealand has very actively developed dairy farming, so by tracking data on the cost of milk powder, many traders make their forecasts. Also, do not forget that New Zealand is a tourist country, so data on an increase or decrease in the number of tourists always has a strong impact on NZD.
The state is also rich in minerals, including gold and oil, so changes in commodity prices are often reflected in the NZD. When analyzing the movement of a currency pair, you need to pay attention to the news from the main trading partners, namely Australia, the USA, and Japan. Also, the NZD exchange rate is influenced by main macroeconomic indicators such as GDP, unemployment, business activity, and trade balance .
USD is the main world currency and the national currency of the United States.
The dollar is influenced by a very large number of factors, but the main ones include macroeconomic indicators for the United States such as GDP , balance, unemployment. The United States can also be called an industrial center, so all news that concerns the industrial sector greatly affects 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 strongly to positive or negative information.
To successfully forecast the NZD/USD currency pair, it is necessary to take a comprehensive approach to analyzing the main indicators of the two countries. However, you must understand that NZD/USD is characterized by long-term trends, so using long-term strategies on this instrument is considered the most productive activity.