23 Jul 2021 23:59
NZD/NOK (New Zealand dollar vs Norwegian krone)
The NZD/NOK currency pair is the cross rate against the U.S. dollar. There is no the U.S. dollar in this pair, but the greenback makes a dramatic impact upon it. To make it clear, just combine the NZD/USD and USD/NOK charts, and you will get the approximate NZD/NOK chart.
The New Zealand dollar and the Norwegian krone fall under the great influence of the U.S. dollar. So, for a better prediction of the future pace of the currency pair, you need to take into account the most important indicators of the U.S. economy. There are such indicators as the GDP, producer price index (PPI), unemployment rate, trade balance and many others. Do not forget that the currencies listed above may react in a different manner to the changes in economic situation in the United States.
The principal export industries of New Zealand are agriculture, horticulture, fishing and forestry. Moreover, the country has historically been the world's largest exporter of wool. As you can see, New Zealand is heavily dependent on its agricultural production, the majority of which goes on export. The main trade partners of NZ are the U.S.A., Australia, and the Pacific Rim countries. Thus, you should stay tuned for latest news, because any changes in the current state of affairs in these countries may reflect in the economy of New Zealand.
Norway is one of the world's most advanced countries with developed industry and agriculture. The high economic development of this country is provided by quality of life and income per capita. Besides, Norway is considered as the third largest producer and exporter of oil and gas in the world. The export of energy resources generates the main part of this Nordic country's state revenue. The key industrial sectors of Norway are electrometallurgy, mining, electrical and mechanical engineering. In addition, the country sells abroad a great amount of its offshore drilling platforms for oil and gas. Norway is also the major supplier of seafood in the world.
Comparing to the major currency pairs such as EUR/USD, USD/CHF, GBP/USD and USD/JPY, this one is relatively illiquid. Therefore, when you make a prognosis for the future movement of this financial instrument, you should primarily focus on those currency pairs that consist of the NZ dollar and the Norwegian krone in tandem with the U.S. dollar.
Remember, the spread for the cross currency pairs is usually higher than for the more popular ones. Thus, before you start dealing with cross rates, study thoroughly the broker's conditions for this specified trade instrument.