Currency Charts: NZD to USD

The US dollar and the New Zealand dollar are among the most popular ones on the Forex Market. These pair attract both newcomer and experienced traders because they are known to be the most stable currencies.

Some facts about the NZD/USD currency pair

One of the most stable currencies among the traders is considered to be the New Zealand dollar. Its other, unofficial name is “kiwi” because the symbol of the country is this bird – kiwi. The organization that is responsible for issuing currency is the Reserve bank. Even though trading sessions with NZD are attractable for traders during the Pacific zone trading hours, the NZD/USD currency couple can be traded non-stop. The time during which the highest trading activity occurs is within the European trading session.

The New Zealand dollar is on the list of the top10 currencies in terms of the trade amount. Moreover, the country maintains high-interest rates, which is why this currency is used a lot in trading operations. The economy of the country depends on the export of goods and food retail, especially those that are carried out with sheep wool and meat and dairy products. In recent years, this country has become a popular attraction for tourists from around the world. The main attraction is the indigenous people Maori. Besides, New Zealand is the place where the films directed by Peter Jackson based on the J. R. R. Tolkien works were shot.

The US dollar is also one of the most stable and most popular currencies on the Forex market. Almost half of the transactions that are carried out on the market are completed with the US dollar. The name “dollar” was derived from the German “thaler” when the first settlers began calling any silver coin a dollar. Also, it should be noted that before the 1860s, the country didn’t have a single banknote system.

During those times, the dollar bills were being printed by many private banks, but there was no single design, all banknotes were different. Finally, in the 20th century the US Federal Reserve System, which is acting as a regulator, began to take control over the productions and distribution of the bills.

New Zealand Dollar/US Dollar on Forex

The currencies serve as a connecting link between the economies of the two countries. The New Zealand currency began to attract investors right after the commodity boom. This currency pair can be of interest for both the newcomers and the experienced traders, but all of them need to know how to differentiate a reasonable risk from an unjustified one.

The volatility of the NZD/USD pair is always on the low; it never exceeds one hundred points. During this period, the risk of losing funds is shallow, which is why many newbies choose to carry out deals with this currency. Professional traders are not that much active within this currency pair, because as the volatility is low, so is the potential profit. The NZD/USD currency pair is also lovely for the traders that choose medium and long term strategies for trading. And don’t forget about the correlation between NZD/USD and AUD/USD pairs, as of the fact that the latter pair depends on the metal price changes and this entails changes in the first pair.

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