28 Jan 2021 02:09
NZD/SGD (New Zealand Dollar vs Singapore Dollar)
NZD/SGD is not actively traded on Forex. The pair represents a cross rate against the U.S. dollar which has a great influence on NZD/SGD. By combining the NZD/USD and USD/SGD price charts, it is possible to get an approximate NZD/SGD price chart.
As the U.S. dollar can affect the NZD/SGD rate, it is necessary to monitor major economic indices of the USA such as the discount rate, GDP growth, unemployment, new vacancies, and many others when analyzing the pair movements. Moreover, it should be noted that the currencies can respond with different speed to the changes in the U.S. economy.
Economic data from New Zealand on interest rate, GDP growth, economic activity, and the level of trade with other countries is also very important in trading NZD/SGD. Being one of the largest wool producers, New Zealand is famous for its wool industry which is one of the fundamental sectors of its economy. Besides, the country depends on its main trading partners: the USA, Australia, and the Asia-Pacific region. For this reason, it is necessary to consider the key indicators from those countries as well.
Singapore is a developed industrial country with high living standards. Advantageous location at the crossroads of major shipping routes enabled Singapore to reach such level of development and have an active trading with world main economies. To date, Singapore exports home electronics and information technology products, shipbuilding products and financial services. Thus, export strongly influences the economy of this country and its national currency.
Singapore is listed among the group of so-called "Asian tigers" thanks to the rapid development of its economy. In such a way, the country is approaching to major Western economies such as the USA, Germany, France, Great Britain, etc.
NZD/SGD has low liquidity as compared to EUR/USD, USD/CHF, GBP/USD, and USD/JPY. Therefore, when you try to project the pair's further movement, consider NZD/USD and USD/SGD currency pairs.
Usually, the brokers set a higher spread for cross rates rather than for major currency pairs. Thus, read carefully the terms and conditions offered by broker to trade crosses.